Forex news for US trading on September 22, 2015:
- September 2015 US Richmond Fed manufacturing index -5 vs 2 exp
- September 2015 Eurozone consumer confidence -7.10vs -7.00 exp
- China slowdown is a major risk for global economy says IMF's Lagarde
- July 2015 US FHFA house price index 0.6% vs 0.4% exp m/m
- Gold down $8 to $1125
- WTI crude down 85-cents to $45.83
- S&P 500 down 24 points to 1942
- US 10-year yields down 6.5 bps to 2.13%
- JPY leads, GBP lags
There were no fresh reasons for pessimism but there was plenty to go around. The chief victim of risk aversion was GBP/JPY as it fell more than 280 pips at the extremes. Worries about global growth continue to percolate.
EUR/USD was soft heading into US trading and continued to lose ground in a slide to 1.1114 from 1.1160 before a bounce to 1.1130.
USD/JPY matched an earlier low at the start of US trading to form a double-bottom on the intraday chart at 119.70 and that was the springboard to 120.12. It highlights that most of the worries peaked in European trading.
One exception was in cable, which fell an additional 100 pips after US traders arrived. it hit 119.70 in the third day of losses but held last week's low of 1.5328.
The Canadian dollar held up well amidst broad US dollar strength. It was boosted by a decent day for oil but the dominant features on the chart are the recent reversals to the upside.
AUD/USD faced selling pressure as the two week bounce continues to get extinguished. Selling that started in Europe extended through the first few hours of US trading at down to 0.7060 before a bounce to 0.7090.
