Forex trading headlines 14 August 2014
The data
- US initial jobless claims 311k vs 295k exp
- July 2014 US import prices -0.2% vs -0.3% exp m/m
- June 2014 Canadian new housing price index 0.2% vs 0.2% exp m/m
- US consumer debt fell in Q2 for the first time since Q2 2013
The news
- Finnish president Niinisto says ” I have a feeling we are at the gates of another Cold War”
- Putin says Russia should aim to sell oil and gas for roubles globally
- EU to hold emergency talks on food surplus caused by Russian import ban
- Poor growth and threat of deflation – “Nothing to see here” says EU
- BOE says it is not in talks with Scottish government on future policy
- Shelving of GPIF law is another green light for Japanese stocks
The analysis money can’t buy (well, Mike will take a tenner for it)
- USDCHF once again holds support lines
- USDCAD still heavy but bids providing support in the dips
- US 10 year yields looking over the cliff as they break 2.40%
- What effect will ECB QE have on the euro?
- Oil crushed on over supply and lack of demand
- A wrap within a wrap as Chinese hackers target yours truly
- Gold not joining in the commodity rout
Range bound we remain with pretty much the same moves we saw yesterday. Though the euro should have been reeling from yet more bad data it took a slight rise in claims to ignite the buy rocket again and once again we strode forth into 1.3400. Once more we were knocked back below just as quickly and we finish the session at 1.3366. I probably could have C&P’s yesterday euro portion of the wrap
US bond yields took a tumble and 10’s were peeping over the edge of cliff at 2.40% 2.391% was the low and the dollar got an extra wobble as USD/JPY took that and the data to 102.31. Again stocks ignored everything to march up on their merry way and a late rally in 10 yr yields to 2.44% has seen USD/JPY holding 10 pips off the session high at 102.45
Stocks go out on the highs as follows;
- S&P +8pts to 1955
- Dow +62pts to 16713
- Nasdaq +19pts to 4453
Cable went MIA and if you find her can you put her in a taxi and send her home as there’s data out tomorrow.
The swissy saw some action as the USD/CHF fell and EUR/CHF slid down to 1.2110 and the lowest since Mid March. A breach of 1.21 may get the peg alarms ringing at the SNB and don’t rule out them getting some sneaky bids in.
Oil was where the big action was at as commodities across the board took a spill on European growth worries and weaker demand in general. Both WTI and Brent leaked around $2.50 and see out the US session around 15/30 pips of the lows of 101.90 ion Brent and 93.83 in WTI
Once again apologies for the loss of service earlier and thank you for your continued support.
Eamonn has now docked back in Manly harbour and once he’s ferreted his swag of snide Ipads through customs he’ll be right with you
Have a good one everybody.
