Session Wraps - Major Forex Headlines wrapped up by trading session

Forex news for Asia trading Monday 22 July 2019

Ranges across forex in Asia to open the week here on Monday were small but we did get some yen weakening during the Tokyo morning. USD/JPY traded above 108 before dipping back just under. News and data flow was limited indeed. The Japanese upper house election result saw PM Abe Shinzo maintain his majority in the chamber. The main implication for economic policy is it would appear to further cement the scheduled October sales tax in place. 

CHF is lower against the USD also.

NZD is higher on the session, NZ/USD ticking towards 0.6775 for a circa 15 point gain for the session. Mainly smaller ranges elsewhere with little net change against t the big dollar for EUR, AUD, CAD. 

Cable has added on a few tics only.

Overall a quiet beginning to the week in the time zone here. 

Still to come:

---
Chart of the session today is …. 

USD/JPY up, NZD/USD up …. NZD/JPY the big winner on the session

Forex news for Asia trading Monday 22 July 2019

View More

Forex news for North American trade on July 19, 2019:

Markets:

  • Gold down $20 to $1425
  • WTI crude up 65-cents to $55.95
  • US 10-year yields up 3 bps to 2.05%
  • S&P 500 down 18.5 points to 2976
  • USD leads, EUR lags on day
  • NZD leads, GBP lags on week
North American trade started out with a miss on Canadian retail sales. That quickly sent USD/CAD up to 1.3110 on the headline but the gain didn't last, in part due to details of the report that showed an odd drop in grocery store sales as a main culprit. USD/CAD retreated to 1.3070 shortly after then fell further late as Iran worries prompted a rebound in crude.

The market looked to be grinding towards the finish line but was hit by a series of headlines late. The first was that Iran had seized a UK-flagged ship in the Strait of Hormuz. That sent oil higher and worried stock markets. A WSJ report talking about only 25 bps compounded the move and that sent stocks from flat to solidly negative in the final two hours.

USD/JPY initially jumped on the Fed talk and hit 107.98 but gave back the 20 pip move in the following hour. It was a similar story across the board with the FX market less worried about the timing of cuts.

Cable started the day near 1.2550 and a session high but bled lower into the London fix and fell as low as 1.2476 on the WSJ report before finishing nearly right on the 1.2500 figure.

EUR/USD slipped a bit on a Speigel report about Draghi planning to ease in November but the damage was barely noticeable. Still, it was a rough finish for the euro at 1.1216 from 1.1282 late yesterday on the Williams talk.

Have a great weekend.
FX news wrap ticker

View More

Author: Justin Low

1

Forex news from the European morning session - 19 July 2019

Headlines:

Markets:

  • USD leads, EUR lags on the day
  • European equities lower; E-minis up 0.1%
  • US 10-year yields up 2.2 bps to 2.047%
  • Gold down 0.6% to $1,437.40
  • WTI up 1.4% to $56.10
  • Bitcoin down 3.0% to $10,299

EOD 19-07
It is all about the dollar as we look to wrap up the week following the flip flop fiasco involving New York Fed president John Williams' comments overnight.

The dollar gained ground in Asia Pacific trading before gains eased up and then continued its track higher in the European morning - backed by a report from WSJ citing less dovish remarks from perennial Fed dove James Bullard from an older interview.

EUR/USD traded around 1.1240-60 for the most part in early trades before making new lows on the session towards 1.1230 as the dollar gained fresh ground during the session. Cable also moved from 1.2540 to a low of 1.2510 before recovering some ground.

As Treasury yields held higher, it kept USD/JPY bid on the session with the pair hovering around 107.60-70 despite a bit of a setback in European equities after a brighter start. The sentiment in Europe was dragged by risks of a potential Italian election shaping up.

Oil held firmer on the session after the US shot down a drone in the Strait of Hormuz overnight, which Iran still vehemently denies that it was one of theirs. WTI is up by 1.4% currently to $56.10 although gains have eased up a little during the morning.

Looking ahead, the main focus will still be on the dollar and the Fed as markets grapple with what to expect ahead of the 31 July FOMC meeting. Hence, pay attention to the final few Fed speakers left today before the blackout period commences tomorrow.

I wish you all a great weekend and have a wonderful rest of the day!

View More

Forex news for Asia trading Friday 19 July 2019 

If you missed the US session you missed the speeches from Fed officials Clarida and Williams - the two of note. Clarida got the ball rolling with dovish comments and Williams followed up later with more. Markets were quick to latch onto Williams' remarks, taking what he said as signalling a 50bp rate cut at the upcoming July meeting. The response was swift, equities caught a bid and the USD dropped. This was during the US session but its the background for what came next …


Forex news for Asia trading Friday 19 July 2019 

We entered early Asia (well prior to Tokyo markets, i.e. only NZ and Australia getting active) with a bit of consolidation, but this didn't last. Officials at the New York Fed issued a correction to Williams' comments, saying they were academic and 'not about potential policy actions at the upcoming FOMC meeting'.

Market response to this was even more swift, with a sharp upmove for the USD and equities dropping. As the dust settles the market has pulled in its expectations for 50bp, although not removing it completely from the table, and moving back towards it'll be a 25bp cut. 

Movements for currencies were, in summary, that sharp move up for the USD and then  retracement moves to varying extents across currencies.

  • EUR/USD dropped from touching just over 1.1280 to circa 1.1240 and a retrace towards 1.1270. 
  • USD/JPY lows were just above 107.20, the clarification from the Fed took it back to 107.60 and its just over 107.50 as I update.
  • AUD/USD high just over 0.7080 (NZD/USD just over 0.6790) then the drop to under 0.7060 (NZ under 0.6770) before stabilising above 0.7070 (NZ circa 0.6765). 
  • CAD, CHF, GBP played out accordingly.

Gold had a great US session and managed a high above $1,452 before given 15 or so dollars back. 

News and data flow apart from this was limited. Japanese CPI data indicated well under the BOJ target, nothing new here.


View More

More session wraps for your convenience.

By continuing to browse our site you agree to our use of cookies, revised Privacy Notice and Terms of Service. More information about cookiesClose