Forex headlines for June 20, 2014:
- May Canadian CPI 2.3% vs 2.1% exp y/y
- April Canadian retail sales 1.1% vs 0.4% exp m/m
- June eurozone consumer confidence flash -7.4 vs -6.5 exp
- There’s too much liquidity in financial markets says Schaeuble
- Spain’s Restoy sees significant risk of low inflation
- Coeure says ECB ready to act if deflation threat arises
- Ukraine announces ceasefire until June 27: Interior Ministry
- Kremlin says Ukranian peace plan looks like an ultimatum
- Gold down $6 to $1314
- WTI crude up $107.26
- S&P 500 up 3 points to record 1963, sixth day of gains
- CAD leads, NZD and GBP lag
The US dollar managed to erase most of the post-FOMC losses but couldn’t push the gains and weakened late in the day.
USD/JPY climbed as high as 102.20 just before the London close as it continued the climb from 101.80 in Asia. It’s been a slow grind from there down to 102.06.
The euro turned in a fairly volatile day, at least judged on recent standards. From 1.3630 in Asia it slid down to 1.3664 but the bottom came near the start of US trading as the single currency climbed back to 1.3700.
The star of the day was the Canadian dollar. Take a look at the daily CAD charts this weekend if you get the chance, they’re mouth-watering. There were two reasons to buy with the CPI and retail sales numbers today and USD/CAD made a near-instant move to 1.0755 from 1.0820. The 200-day moving average at 1.0781 gave way and the pair closed near the lows of the day.
The pound closes the week above 1.7000 and that’s an important marker for the bulls. Cable traced out a modest double-top at 1.0760 and skidded to 1.7003 but no lower and finishes comfortably above the psychological mark.
