Forex news for Oct 14, 2014:
- Oil posts largest one-day decline since 2012
- USD/CAD rises to the highest since 2009
- European Commission likely to reject Italy’s budget – RTRS
- Fed’s Williams: No change in his mid-2015 rate liftoff projection despite concern about global growth
- Williams: Would consider further asset purchases if inflation outlook starts to fall
- Gundlach calls the bottom on Treasury yields
- European Court to give opinion in ECB OMT case January 14 2015
- Citigroup beat Q3 2014 revenue estimates but is pulling out of some consumer banking
- German economic ministry cuts 2014 and 2015 GDP forecasts
- Every cent decline in US gasoline prices is worth $1 billion – DB
- September 2014 US NFIB small business optimism index 95.3 vs 95.8 exp
- Schaeuble says economic environment has worsened
- OPEC unlikely to hold emergency meeting before Nov 27
- September forex volumes rise 21%
- Bank of America survey sees fund managers most bearish on equities for 2 years
- Canada’s TSX index enters correction, down 10% from top
- Gold down $2 to $1233
- US 30-year yields touch 2.92%, cycle low
- US 10-year yields touch 2.17%, bounce to 2.19%, cycle low
- German 10-year yields hit 0.84%, fresh all-time low
- S&P 500 up 2.5 points to 1877 after rising as high as 1898
WTI crude down $3.84 to $81.90 - JPY leads, AUD lags
If it’s not one thing, it’s another. Stocks managed to close the day nearly unchanged but oil fell off a cliff and the Canadian dollar went down with it.
In Europe the pound and euro were trashed by a weak US CPI and ZEW. The euro was remarkably stable against the US dollar in a 1.2645-1.2680 range. It climbed near the top in the early going but sank back to the bottom later.
Cable didn’t hold up so well and broke the European low of 1.5905 and the big figure but didn’t push much lower.
USD/CAD took off in a straight line higher in US afternoon trading. The steady move up from 1.1235 started after the London close and continued until stalling ahead of the 2014 high of 1.1278. Once that broke it was a straight-line move to 1.1314.
AUD and NZD slid to session lows late in the day after the S&P 500 gave up an earlier 1% gain. AUD/USD briefly sank below 0.8700 and NZD/USD touched 0.7820.
The big story was oil as prices absolutely cratered. It’s been a never-ending slide in crude but it went into overdrive today in a 5% plunge and has hardly bounced.
So while there might have been some minor stability in stocks, the rout in oil will keep traders on edge.
