Forex headlines for August 11, 2014:
- July 2014 Canadian housing starts 200.1k vs 193.0k annualised
- NATO sees ‘high probability’ of Russian invasion
- Russian Q2 GDP 0.8% vs 0.7% exp y/y
- Ukranian rebel leader mulling counterattack – RTRS
- Cleveland Fed says higher rents will underpin inflation
- Forex daily volumes down nearly 14% in July but it’s not all bad news
- Decision on Premier Sets Iraqi Leaders on a Collision Course – WSJ
- Morgan Stanley says USD/CAD longs remain the best bet
- S&P 500 up 5 points to 1937
- Gold down $2 to $1309
- WTI crude up 29-cents to $97.94
- CAD leads, EUR lags
The theme was generally positive risk appetite but the market wasn’t very hungry for moves. The only real sustained trend in US hours was a slide in USD/CAD is it slipped to 1.0923 from 1.0955 in a steady round of selling that virtually erased Friday’s gains on the soft Canadian jobs data. Bids are at 1.0909 and the big figure.
The euro was a an underperformer but a slide to a marginal session low at 1.3381 didn’t inspire and follow through and the pair continues to skid along the bottom of the daily range.
USD/JPY tried to make a late break to a session high and touched 102.23 but, again, there was no follow through with the market content to let the day roll off.
The focus remains on Ukraine as the Red Cross tries to broker a multilateral aid operation. It appears closer to fruition but NATO’s Rasmussen warning of a Russian invasion left traders wondering what he knows and they don’t.
Cable leaves they day as a mild winner in a slow rise to 1.6790 as it tries to reverse 5 weeks of declines. There is a glut of news/data on Wednesday that GBP traders are eagerly anticipating.
The Australian dollar wasn’t on the same wavelength as the loonie as AUD/USD drifted slowly lower to 0.9263 as it bites into Friday’s gains.
Overall, this won’t go down as a memorable day but the trend has been for quiet Mondays lately and better action later in the week.
