Forex trading headlines for 9 June 2014
The data
- May Canadian housing starts 198.3k vs 185.0k exp
- May US employment trends survey 118.58 vs 118.0 prior
The featured
The gift of the gab
- Canada concerned that G20 and others may slide back into deeper deficits and debt
- “We’re free…nearly” says Portuguese PM
- Russian EU envoy not happy with EU over South stream pipeline stoppage
- Fed’s Bullard: We’re closer to success than we’ve ever been
- Congress needs to improve fiscal policy says Bullard
- Fed may look earlier than late Q1 2015 for rate rises – Bullard
- ECB’s Noyer says Low and declining inflation increases risk of deflation
- There’s confidence in the UK recovery says BOE’s McCafferty
- Fed’s Tarullo says more work is needed to balance bank risk incentives
- Canada keen on Australia says aussie PM Abbott
- Monetary policy exits can be unsettled says Fed’s Rosengren
- US housing will probably improve says Rosengren
- Lagarde sees a risk of a period of low inflation
- Lagarde is concerned about complacency in Europe
Oh where to begin?
If you hadn’t made your money early in the European session you might have gone poor in the US one. US traders had the weekend to think about events and they decided that the world was smelling of roses and so embarked on a bout of risk buying. The dollar was in favour as US yields climbed to 2.62% and USD/JPY rose a whopping 21 pips from 102.38. The dizzying heights were too much for some and so we slipped back to 102.50 and have spent the rest of the session in a 5 pip range.
EUR/USD looked like it might produce a move worthy of recognition and the fall through 1.3600 looked like it could spark us into life. Alas, the old 1.3580/85 level was back in play from Friday and we bounced along that bottom for the rest of the day.
Cable similarly lost it’s footing at the round number of 1.68, more or less matching the euro’s fall and hitting it’s own 80/85 level. One bounce saw it peep above 1.68 but it was fleeting and we finish at 1.6795
AUD/USD took a 25 pip bath as the market went looking for USD’s then spent the afternoon clawing it all back to 0.9353
Oil was the star performer of the day carving out a $1.86 gain from bottom to top as the grasp for growth took hold. 104.38 is where it bows out.
US stocks we’re surprisingly calm with the S&P making a new high at 1955.55 before falling back to 1951, +0.1%
Besides oil and the dollar the day was lacking adventure and some hangover from the ECB and NFP was maybe to be expected. European bond yields had another awesome day suggesting that despite the ECB action money is still happy to plonk itself in Europe.
Eamonn “The Master Blaster” Sheridan has beamed down (or up depending on where you are) and I’ll leave you in his very capable hands.
Back to normal shift wise tomorrow so I’ll see you all in the UK morning. Safe trading and many pips to you all.
