Forex news for January 30, 2015
- Q4 2014 US GDP 1st estimate 2.6% vs 3.0% exp q/q ann
- US Q4 employment cost index +0.6% vs +0.6% q/q exp
- January 2015 US Chicago PMI 59.4 vs 57.5 exp
- U Mich final Jan consumer sentiment 98.1 vs 98.2 prelim
- Baker Hughes US rig count 1543 vs 1633 prior
- Canadian Nov GDP -0.2% vs 0.0% exp
- Greek government confirms that the Troika is not welcome back in Greece
- ECB says it won’t comment on story that Greece is refusing to enter into new Troika programme
- McCrann calls his comment about ‘almost certain’ RBA cut, a ‘prediction’
- Bullard says he’d like to get off zero rates sooner
- Bullard foresakes his belief in breakevens
- Fed’s Fisher: Fed at tipping point. Preparing to raise rates
- SF Fed’s Williams: Not concerned about GDP
- CFTC Commitments of Traders data
- Gold up $27 to $1284
- WTI crude up $3.29 to $47.67
- S&P 500 down 26 points to 1994
- JPY leads, CAD lags
The GDP report was the calendar highlight and it was a touch lighter than expected. That might have been partly priced in after soft shipments in the durable goods report and one of the drivers was trade so it didn’t say much about the domestic economy going forward. The bond market rallied but FX was largely indifferent.
It was a totally different story in Canada after a weak GDP report. Oil was soft early as well and it smashed the loonie, sending USD/CAD to within two pips of 1.2800.
The big story late in the day was oil as it shot up 8% at the highs after the rig count data. That gave the loonie some life and USDCAD fell back to 1.2707 to close out the week.
Fixing sales weighed heavily on cable and spark a run below 1.5000 but it rebounded afterwards to finish at 1.5061.
We were excited about a potential break higher in USD/JPY yesterday as it neared 119 but it gave back all teh gains today in a steady slide back to 117.42. Eyes on the bottom of the range now.
The euro was strong in Europe but under pressure throughout US trading and fell to 1.1280 from 1.1350. It closed very close to the lows.
Have a great weekend, we have some website changes coming in the very near future so stay tuned.
