Forex news for US trading on July 22, 2015:
- US June existing home sales 5.49M vs 5.4M expected
- US FHFA May monthly home price index +5.7% y/y
- ECB said to raise Greek ELA ceiling by €900M
- Tsipras mulls September snap election - MNI
- EIA US crude oil inventories +2486K vs -2200K exp
- Caterpillar shows global construction and mining in a deep rut
- McCrann: Inflation data gives RBA room to breath
- Gold down $7 to $1094
- WTI crude oil down $1.73 to $79.13
- S&P 500 down 5 points to 2114
- US 10-year yields flat at 2.32%
- GBP leads, CAD lags
The US dollar bounced back on Wednesday. Yesterday's trading sparked a quick squeeze on USD and today it retraced.
The moves in cable and the commodity currencies were completely wiped out, which EUR/USD and USD/JPY retraced moves but not all of the moves.
US dollar buying was strongest in the before London left for the day and since then, there has been some retracement. In general, existing home sales is a low-tier indicator but today it didn't have to share the spotlight and helped to underpin the dollar.
ER/USD touched 1.0967 in Europe to match yesterday's US high but it put in a double-top there and skidded almost a full cent lower before a late charge to 1.0920.
USD/JPY was at the leading edge of an improvement in risk sentiment. It held a steady bid early in US trading and rose to 124.15 from 123.75 before a late slide back to 124.00.
The best action was in the commodity bloc. USD/CAD hit a fresh six-year high at 1.3053 but all eyes are on the crisis high of 1.3065. If that breaks, look for buy stops. Last at 1.3035.
The catalyst for Canadian dollar losses was yet-another fall in oil. The $50 barrier cracked again but was followed by a bounce to $50.55 but jitters quickly set in later and prices tumbled to $49.14.
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