Forex trading headlines for North America July 25, 2014:
- June durable goods orders +0.7% vs +0.5% expected
- US June capital goods orders non-def ex-air +1.4% vs +0.5% expected
- Sharp downward revisions to prior non-def ex-air
- GDP estimates cut after durable goods orders report
- June French jobseekers 3398.3K vs 3399.5K expected
- S&P confirms Belguin at AA; stable outlook
- Man tests positive for ebola in Lagos, Nigeria
- Isreal’s security cabinet has unanimously opposed Kerry’s ceasefire proposal
- Obama spokesman says sanctions having economic impact on Russia
- FBI searches Ford HQ for signs of spying
- Gold up $13 to $1307
- WTI crude down 10-cents to $101.98
- S&P 500 down 10 points to 1978
- USD and JPY lead, CAD lags
The US dollar generally shook off a soft durable goods report. The main headline was good but poor revisions, especially in the key components highlighted the downside risks in the US economy.
But the market is looking forward to the week ahead and sees the risk of a hawkish tilt from the Fed and another good non-farm payrolls report. The means the week ahead could be a strong one for the US dollar and traders were looking to get out ahead of it. At the same time, risk aversion was rising, especially after Visa had some negative words for broader markets.
USD/JPY was slightly on the defensive as it slid down to 101.81 from 101.91. Sellers at the 102.00 level capped the optimism.
EUR/USD was a better spot for volatility as it slid down to an 8-month low of 1.3422. The earlier IFO weighed along with a tough day for core European stocks.
Cable continues to skid along the bottom of its recent range at 1.6978. The European low of 1.6960 held and that might give the bulls a bit of optimism next week.
The Canadian dollar played a starring role in the market moves and we outlined 5 reasons why the loonie struggled (and may continue to). The high on the day was 1.0820 after a quick squeeze on the break above 1.0790. We close up near the top.
AUD/USD finishes close to 0.9400, as it has so often in the past 6 weeks. You get the sense that it’s “no or never” for an Aussie dollar rally.
The good news for the kiwi was that it didn’t fall any further in US trading. The bad news is that it finishes near the weekly lows at 0.8553.
