Forex headlines for July 17, 2014:
MH17:
- Malaysia Airlines MH17 crashes in Eastern Ukraine, 295 killed
- Ukraine rebels blamed, said to have used surface-to-air missiles
- Ukraine claims to have intercepted phone calls showing rebel involvement with Russian assistance
- Ukraine rebel leader earlier posted about downing plane, deleted messages after realizing it was a civilian jet
News and data
- Israel launches ground assault in Gaza
- July 2014 US Philly Fed survey 23.9 vs 16.0 exp
- Philly Fed new orders highest since 2004
- June 2014 US housing starts 0.893m vs 1.018m exp m/m
- US initial jobless claims 302k vs 310k exp
- ECB’s Jazbec says Espirito Santo issues won’t affect other European banks
- ECB’s Vitor Constancio says some banks will fail ECB asset review
- Foreign investors bought the most Canadian securities in two years in May
- Standard & Poor’s forecasts eurozone GDP up 1.1% in 2014
- Bullard says Fed may need to tighten ‘sooner rather than later’
- Gold up $20 to $1319
- WTI crude up $1.99 to $103.20
- S&P 500 down 23 points to 1958 — largest drop since April 10
- VIX up 32%
- US 10-year yields down 7 bps to 2.45% — lowest since May 30
- JPY leads, NZD lags
The plane crash story hit an hour before midday in the US and sent markets on a wild ride. It was a pure ‘risk off’ trade with bonds/gold rallying, stocks crashing and the Japanese yen leading the way. There the initial fright, then a bounce and then we ended near the extremes of the day.
Here are the levels and ranges:
