Forex trading headlines for July 23, 2014:
- Canadian May retail sales +0.7% vs 0.6% expected
- Canadian retail sales ex-autos and gas down 0.3%
- Carney: Doesn’t know when rates will rise
- July 2014 eurozone consumer confidence flash -8.40 vs -7.50 exp
- US could expand Russia sanctions, official says
- NATO continues to see evidence of weapons entering Ukraine from Russia
- Hamas leader says ready to accept humanitarian truce in Gaza
- Plane crashes in Taiwan, killing 47
- Now is not the time to be going short EUR/USD says Credit Agricole
- IMF says Fed could keep rates low past mid-2015 if outlook holds
- Citi sees a case for USD/JPY longs
- Bank FX-settlement talks with UK regulator said to accelerate
- Gold down $1 to $1305
- WTI crude up 60-cents to $102.98
- S&P 500 up 3.5 points to record 1987
- AUD leads, GBP lags
Here are the stories on the market moves:
- The euro was doing a whole lotta nothing around 1.3465, which is a minor victory for the bears with the market unable to muster a bounce after the break of 1.35
- USD/JPY got a lift to 101.50 from 101.40 on a decent tone in stocks and yields holding their ground (which is like a victory in this market)
- Cable bulls were giddy ahead of the MPC minutes then got slammed down to 1.7023. The lows came early in US trading. Kinda surprised we didn’t fall further.
- Similar story in USD/CAD as the market pushed the downside ahead of retail sales but couldn’t hold on soft details. Low of 1.0711, high of 1.0746. Finished in the middle.
- AUD/USD finishes on the highs at 0.9457 as the market cheers the CPI report. 0.9461 is a level to watch.
Heads up, the RBNZ decision is coming up at the top of the hour. The OIS market is pricing in an 86% chance of a rate hike.