Forex news for US trading on September 8, 2015:
- Warren Buffett: US economic fundamentals are still quite strong
- August 2015 US NFIB small business optimism index 95.9 vs 96 exp
- Blackstone buys US luxury hotel chain
- US labor market conditions index change 2.1 vs 1.1 prior
- FX trading volumes jumped in August
- US sells 3-year notes at 1.056% vs 1.055% WI
- PBOC says fall in FX reserves is partly down to FX intervention
- EUR/CHF rises to highest since the floor broke,
- Gold up $3 to $1122
- S&P 500 up 48 points to 1969
- US 10-year yields up 9 bps to 2.97%
- Australian dollar leads, Swiss franc lags
If you're looking for some reasons for the market moves in the headlines today, you won't find them. After a dismal close on Friday, there were worries about what would happen when US markets returned but a bounce in Chinese stocks along with a vacation-rested market led major rallies in stocks and commodity FX.
USD/JPY wasn't able to gain much ground in US trading. The pair shot to 120.20 from 118.80 in early European trade and then faded back to 119.70 at the European close. Afterwards some mild buying on a late-day stock market rally propelled the pair to 120.01. For all the optimism around, USD/JPY still shows plenty of trepidation.
EUR/USD was similarly out of the spotlight. It shot to 1.1260 from 1.1165 in Asia but completed the round trip before US traders rolled out of bed. As New York arrived, the pair worked its way up to 1.1195 from 1.1155 and has chopped within those ranges but caught a bid late and hit 1.1214.
Cable was the star of the European trading day as it made strong gains for the second consecutive day and wiped out half of the decline in its 9-day losing streak. The fun ended just as US markets opened as the pair made a session high of 1.5413. It slipped back to 1.5358 shortly afterwards but found a renewed bid to 1.5390 late.
EUR/CHF continues to march higher and climbed over the Aug 11 high. There is no real rhyme or reason to be relentless bid in the paid but it's undeniable.
