Forex news for February 26, 2015:
- January 2015 US CPI -0.1% vs -0.1% exp y/y
- US Jan real weekly wages +1.2% vs 0.3% expected
- US initial jobless claims w/e 21 Feb 313 k vs 290k exp
- US Jan durable goods orders +2.8% vs +1.6% exp
- Capital goods orders non-defense ex air +0.6% vs +0.4% exp
- December 2014 US FHFA house prices 0.8% vs 0.8% prior
- Canada CPI YoY +1.0 vs. +0.8% est
- Greece could need more than €30bn in third bailout - MNI
- Fed's Williams says if data plays ball first rate rise could be this summer or Autumn
- Kansas City Fed +5 vs -2 prior
- Fed's Bullard is concerned low yield markets will wake up and abruptly reprice a rate hike
- Bullard: Yellen's view not far from median Fed expectations for rate rises
- BOE's Shafik says next likely policy move is a rate increase
- Fed's Fisher sees strong US dollar offsetting economy
- Fed's Mester: In favor of putting June rate hike on the table
- Gold up $4 to $1209
- WTI crude down $2 to $48.98
- US 10-year yields up 6 bps to 2.03%
- S&P 500 down 3 points to 2110
- USD leads, EUR lags
The US dollar was sluggish heading into New York trading but it turned into one of the best days of the year for the buck as wage growth accelerated.
The moves were massive as the euro collapsed to as low as 1.1183 from 1.1375. A huge red candle left the pair at the lowest level in almost a month.
USD/JPY surged along with Treasury yields. The moves in all the pairs weren't abrupt but stead and (eventually) substantial. The pair finished at 119.40 from 118.70 in Europe.
Cable has been a standout performer in February but gave back a big chunk of gains in a 150 pip decline to 1.5400 from a seven-week high of 1.5550.
The Australian dollar was another big story. The soft capex numbers yesterday weighed in Asia but the pair squeezed higher and was at the highs of the day when New York began to trickle in but it was a swan dive from there down to 0.7800, more than a cent from the highs.
The loonie was hit by the double-whammy of a strong US dollar and a 4% fall in oil prices. It was buffered by CPI numbers that give the BOC time to wait.
