Forex news for US trading on June 16, 2015:
- US May housing starts 1036K vs 1090K expected
- Building permits 1275K vs 1100K exp
- ECB's Knot says economic recovery gaining momentum
- ECB's Mersch: Exit from euro not foreseen by treaty
- Greece says it will pay IMF if it can
- One of the major sticking points in Greek discussions is military spending
- New Zealand GlobalDairyTrade index -1.3%
- Kerry says Iran talks 'remain tough'
- Gold down $4 to $1182
- WTI crude up 50-cents to $60.03
- S&P 500 up 12.5 points to 2097
- US 10-year yields down 4 bps to 2.32%
- German 10-year yields down 2.7 bps to 0.80%
- GBP leads, EUR lags
Even a negative day for the euro has a silver lining. EUR/USD dropped in early US trading, falling quickly to 1.1206 from 1.1245 but in a few hours it had recovered the declines and continued to chop sideways for the remainder of the session. We looked at why the euro has been so resilient, even with Greece on the verge of default. The Fed will be a big test tomorrow.
Cable climbed for the sixth time in seven sessions and hit a session high of 1.5654. That's more than a full cent above the post-CPI session low and it's yet-another example of the insatiable recent demand for the pound. Last at 1.5649.
USD/JPY traded in a 123.30 to 123.50 range in US trading after falling early. It found good buying at the bottom of the range and rebounded twice. That same zone was an area of solid buying yesterday.
USD/CAD was in the 1.2310 to 1.2350 range and finishes near the bottom. Oil wasn't a large factor as it chopped in a $59.50 to $60.00 range. Volumes were light ahead of the Fed.
AUD/USD was a similar story is it slowly climbed to 0.7770 in the early going but couldn't get above yesterday's high. Modest sellers dominated the later half of trading and the pair slowly slide down to 0.7744.