Forex news headlines for October 22, 2014:
- Solder killed at Canadian war memorial, man storms Parliament
- Bank of Canada drops ‘neutral’ reference in statement
- Full text of the Bank of Canada statement and the Monetary Policy Report
- BOC: Raises 2014 global growth outlook, lowers 2015/16
- Bank of Canada bumps near-term inflation forecasts, little change on growth view
- BOC’s Poloz says exports responding to lower CAD
- September 2014 US CPI 1.7% vs 1.6% exp y/y
- Canadian August retail sales ex-autos -0.3% vs +0.2% expected
- ECB’s Nowotny say there’s been no decision on ECB corporate bond buying
- Germany says not to expect any specific decisions at EU summit this week
- South Africa slashes GDP estimates
- Kyle Bass: The largest position we have is short yen
- Nelson Bunker Hunt: The man who made one of the most audacious trades in history has died
- Massive bid sparks huge rally in thin 30-year bond contract
- Gold down $6.70 to $1242
- WTI crude down $2.02 to $80.46
- US 10-year yields flat at 2.22%
- S&P 500 down 14 points to 1927 (on the lows)
- USD and AUD lead, EUR lags
Canada dominated the headlines during the North American session and the Canadian dollar was especially volatile.
USD/CAD initially jumped on the soft retail sales report. It then plunged almost a full cent on the Bank of Canada decision then slowly climbed back to finish up about 18 pips on the day near 1.1238. The shooting added some concern but it was mostly in stocks, Canada’s TSX fell the most in 16 months and the shooting got some of the blame for weakness in US stocks.
EUR/USD was in a slow grind lower. It started US trading near 1.2700 and then bled down to 1.2645 in a slow move. Cable bottomed after the MPC but had bounced to 1.6075 at the dawn of US trading and then slid to 1.6050.
USD/JPY perked up to 107.38 early on when risk appetite was solid. Some upside came on the break of the 107.10 Asian highs. But the gains didn’t last and the pair sank back to 107.12 as stocks and bond yields moved lower.
Oil is once again in the spotlight as WTI crude fell $2 and is retesting $80. That’s a critical level.
And finally: Come and join ForexLive at The World MoneyShow London 7-8th November
