Forex news for November 13, 2014:
- WTI crude down $2.87 to four-year low of $74.32
- US initial jobless claims 290K vs 280K expected
- ECB’s Coeure says price stability motivates everything the ECB does
- Coeure: ECB unanimous on additional measures if needed
- Abe moving toward delay of sales tax increase – Nikkei
- Loose monetary policy can promote risk taking says ECB’s Lautenschlaeger
- September 2014 Canadian new housing price index 0.1% vs 0.2% exp m/m
- SME’s to be hit hardest if slump continues – Bank of Italy
- ECB QE expectations rise – Reuters poll
- US House plans vote to approve of Keystone XL pipeline
- US Senate Republicans elect Mitch McConnell majority leader
- US EIA crude oil inventories -1735K vs +680K expected
- Dallas Fed’s Fisher to retire March 19
- Global inflation down to 3.3% from 3.4% last month – BBG
- September 2014 US JOLTS report 4735k vs 4800k exp
- Gold down $1.20 to $1161
- US 10-year yields down 2 bps to 2.35%
- CHF leads, GBP lags
The main story in the FX was the continued bleed lower in cable. There was no particular driver today but short-covering in EUR/GBP shorts was a part of the equation. Selling accelerated in cable as London began to sign off and a little squeeze hit below 1.5700 to 1.5994.
USD/JPY was in a relatively tight range around 115.60-80 and didn’t take much direction from the stock or bond market. We finish near the highs of the day.
The euro took yet another run at 1.25 late in the day but has been beaten back to 1.2475. Overall, it made a nice recovery from 1.2420 yesterday, no doubt aided by EUR/GBP buying.
No surprise that the commodity currencies were under pressure, especially CAD after the plunge in oil. USD/CAD finishes at the highs of the day at 1.1377 from as low as 1.1310.
