Forex news for US trading on August 19, 2015:
- Minutes: Most Fed officials said hike still not warranted by conditions approaching that point
- Minutes: Almost all members wanted to see more evidence of stronger growth and labor markets
- FOMC minutes released early
- Hilsenrath: Officials show no clear sign of having settled on a decision
- Fed plans to add median forecasts for rate projections
- US July CPI ex food and energy 1.8% y/y vs 1.8% y/y expected
- Fed's Bullard: Will argue for September liftoff
- EIA weekly US crude oil inventories +2620K vs -2200K expected
- German Parliament easily approves Greek bailout
- Gold up $16 to $1133
- WTI crude oil down $2.06 to $40.56
- S&P 500 down 17 points to 2080
- US 10-year yields down 7 bps to 2.12%
- CHF leads, CAD lags
A surprise build in oil inventories and a six-year low was upstaged by a leak of the FOMC minutes.
The day started with CPI and the dollar was whipped back and forth. It fell on the headlines but in moments it stormed back to session highs. There was nothing in the details screaming to buy so it spoke to underlying demand for US dollars.
But that demand evaporated with the release of the FOMC minutes. Well not exactly, an initial one-headline leak of the minutes sounded hawkish and the dollar rally but when the full headlines were pushed out the story flipped and dollar longs were routed.
The other story was oil as prices collapsed after an unexpected build in US supplies. Prices held for a time at $42 then quickly broke through, falling as low as $40.46.
