Forex news for US trading on August 26, 2015:

  • Fed's Dudley: Sept rate hike seems less compelling to me than it was a few weeks ago
  • Dudley: International developments have raised downside risks
  • Dudley: "I've said many times I do really hope we can raise interest rates this year."
  • We are a long way from more QE says Dudley
  • US July durable goods orders nondefense ex-air +2.2% vs +0.3% expected
  • Durable goods orders +2.0% vs -0.4% expected
  • July 2015 US building permits revised to -15.5% vs -16.3% prior
  • US EIA crude oil inventories -5452K vs +1450K expected
  • Canada's Harper gives a vote of confidence to the BOC
  • July 2015 France total jobseekers 3551.6k vs 3552.3k exp
  • Tsipras says it's time for the Greek people to decide on his record
  • US sells 5-year notes at 1.463% vs 1.455% WI
  • PIMCO's Mather says he sees Fed talking in Oct, acting in Dec
  • New York Fed argues for labor market slack

Markets:

  • Gold down $16 to $1124
  • WTI crude down 38-cents to $38.93
  • S&P 500 up 10 points to 1936
  • US 10-year yields up 11 bps to 2.18%
  • CAD and USD lead, EUR lags

Stocks roared back and the US dollar was on the warpath but the real mover was cable as it was savagely sold more than 200 pips and the 100-day moving average is barely holding on. The sellers were relentless in Europe and after a bit of consolidation ahead of the US arrival another wave hit, taking the pair down to 1.5465. At the lows there was a rock-solid bid but no signs of a bounce either.

EUR/USD finished near the lows but was also running into major support at the 200-day moving average. The pair touched just below it late in the day but for all intents and purposes it's still holding. Apprehension about the stock market midway through the day led to a bounce to 1.1439 from 1.1350 but selling returned later. This is the clearest risk-on, risk-off trade at the moment but there is a definite downside bias as moves get increasingly orderly.

USD/JPY dipped a full cent in early US trading and then made a complete comeback to finish near the highs. It first peaked after durable goods orders at 119.90 but then slumped 118.90 to erase the Asia/European gains. The later turn in risk appetite sparked a second wave of buying up to 119.94.

USD/CAD was strangely contained even with oil flopping around in a wide range. The lows of 1.3250 hit as Toronto traders were arriving and a steady bid was present afterwards but Tuesday's high of 1.3352 has held so far.

AUD/USD came under heavy pressure as stock market jitters hit. The pair started US trading at 0.7150 then fell all the way to 0.7070 before a late bounce to 0.7112. The spike low on Monday was 0.7020.

If you'd like a great refresher on how to trade fast markets like these, make sure to sign up for Thursday's free webinar. It's at 2 pm ET with a second presentation at 7 pm ET.