Forex news for New York trading on January 8, 2018:
- BOC Q4 Business Outlook Survey futures sales 8.0 vs 19.0 prior
- Nov US consumer credit $27.95B vs $18.0B expected
- Fed's Rosengren: Periodic reassessment of inflation target 'would be useful'
- Fed's Bostic: Wants to see inflation higher to justify 3-4 rate hikes
- Fed's Williams: Price level targeting would 'really a very modest' change
- BMO becomes the final big Canadian bank to forecast BOC rate hike next week
- Oprah is 'actively thinking' about running for President - CNN
- Conference Boards US employment trends 107.1 vs 106.4 prior
- Juncker frets about EU budget after loss of Britain's funds
- Philip Hammond keeps job as chancellor of the exchequer in cabinet shuffle
Markets:
- Gold up $1 to $1320
- USD leads, EUR lags
- S&P 500 up 4.5 points to record 2747
- US 10-year yields flat at 2.47%
- WTI crude up 45-cents to $61.89
It was a soggy start to the week in a session that didn't have much in the way of a distinctive flavour. The euro slid 60 pips to start the week but nearly all the damage was done before US traders arrived. It was at 1.1975 at the start of North American trading, touched 1.1956 and then finished 10 pips higher. It narrowly broke the November high, which is now support.
USD/JPY was soft as the US arrived and it continued down to 112.88 before a rebound to 113.08 later in the day amidst some buying on the London fix.
Similarly, cable was struggling early in Europe and then bounced to 1.3540 at the US arrival. A big bid boosted it into the London fix when it challenged the Asia high of 1.3586. That level held and the bid evaporated after the fix before a slide down to 113.08.
USD/CAD bounced after falling sharply on Friday. The BOC survey cemented a hike next week in my mind and with all the Canadian banks now calling for it as well. USD/CAD showed that's largely priced in as the pair dipped about 10 pips on the release and then bounced back.
AUD/USD finished with a 20 pip decline but it happened in Asia. Several tries at falling below 0.7825 were bought and that's where we stand now.
There was some drama in cryptocurrencies and it looks like another potential washout, led by Ripple. But the dive down to 2.15 in XRP was bought and the 30% decline was mostly wiped out as it bounced to $2.46.
