Forex news for July 27, 2015:
- June 2015 Durable goods orders 3.4% vs 3.0% exp m/m
- Non def cap goods orders ex air 0.9% vs 0.5% exp. -0.4% prior
- China to ramp up state stock market buying
- Chinese regulator on the witch hunt for malicious shorters
- ECB QE count PSP up €10.263bn vs €11.271bn prior
- Troika says Cyprus review is going well
- Quirks in European and Japanese inflation could be a hint
- IMF says the ECB needs to keep pumping
- Gold down $6 to $1093
- WTI crude down $0.99 to $47.16
- US 10-year yields down 4 bps to 2.22%
- S&P 500 down 14 points to 2065
- EUR leads, AUD lags
All the chatter in markets today was about China and what the government is doing to stem the stock market rout. #Chinameltdown is a trending hashtag on twitter in a sign about just how much everyone loves a good rout.
FX is mostly sidelined in the story. EUR/USD was instead putting together a story of its own as a good IFO reading kept a bid in the pair hand helped it to 1.1129 from as low as 1.1046 in early US trading.
EUR/CHF was particularly strong in a climb to 1.0690 from 1.0590. That's the highest since mid-March as fears about Greece dissipate.
GBP/USD was a solid performer in a quick run to 1.5595 from 1.5510 at the start of US trading. Offers at the big figure restrained the runup and caused a retracement back to 1.5560.
AUD/USD was a good example of the souring of sentiment due to China. It climbed to 0.7325 from 0.7280 after durable goods but then sank all the way back and even further to 0.7270.
Oil was once again in pain as it fell $1.07 to $47.08 in a more-or-less straight line, finishing at the lows. There is some support at $47.00 so keep a close eye on crude.
