Forex news for US trading on August 10, 2015:

  • Fed's Lockhart: Interest rate liftoff 'close'
  • Lockhart: US has seen substantial progress in cutting unemployment
  • Lockhart: Progress on inflation important in setting pace of hikes after liftoff
  • Fed will note lower market-based inflation estimates - Hilsenrath
  • Bond market still iffy on September Fed hike
  • Zombie Greenspan warns of bond market bubble
  • BOE's Miles: Saw a 'reasonable case' for rate increase last week
  • ABS buying jumps in sign that ECB programs finding some success
  • Gold up $10 to $1104
  • WTI crude up $0.92 to $44.79
  • S&P 500 up 26 points to 2104 (most in 3 months)
  • CAD leads, JPY lags

It was a struggle to find headlines on Monday but no problem to find price action in markets. The US dollar was relentlessly sold across the board except for USD/JPY, which held onto 30 pips of gains on the strength of stocks, which ended a four-day losing streak.

Cable was near the lows of the day at 1.5460 when US traders arrived and it was a one-way race to buy from there. Quick pops higher came at 1.5475, 1.5500 and 1.5575 and there was mild buying in between. After a couple forays over 1.5600, we finish near 1.5585.

USD/CAD was the other big story. To me, this is a classic example of a sharp retracement in a trending market. USD/CAD longs got crowded and 1.3180 held a couple times to the upside. When oil reversed it was a rush to the exits, sending the pair down all the way to 1.2992. There appears to be some moderate buying interest around the big figure.

EUR/USD got in the act as well but it was slow to arrive. Early US trading was a chop in the 1.0940-1.0960 range and when the European high of 1.0980 was broken, there wasn't much extra enthusiasm but eventually, it hit buy stops above 1.1000 in a quick move to 1.1040 before setting back to 1.1017. Headlines weren't a factor.

AUD/USD rose above Friday's high in another sign that a temporary bottom might be in. After falling to 0.7360 and sticking to it in early US trading, it found a bid after the options cut and didn't stop until 0.7422.