Forex news for US trading on July 20, 2015:
- Fed's Bullard says next week's FOMC may be too early for a rate rise
- Bullard: The probability for Sep liftoff is above 50%
- Chinese oil imports collapse
- Canada May wholesale trade sales -1.0% vs 0.0% expected
- ECB QE count: PSP €227.6bn vs €216.3bn prior
- Obama to nominate Kathryn Dominguez to Fed board
- Tarullo says Fed will tailor stress tests for largest banks
- UN security council unanimously endorses Iran nuclear deal
- Expectations rise for UK hikes after MPC comments
- Gold down $35 to $1099
- S&P 500 up 1.6 points to 2128
- US 10-year yields up 2.7 bps to 2.37%
- WTI crude oil down 95-cents to $49.94
- NZD leads, CHF lags
Newsflow was limited on Monday and the final round of the British Open sapped some attention from markets.
The S&P 500 traded above the all-time record closing high but finished a couple points below it. The comment from Bullard set the stage for early US dollar gains but a quick round of selling in EUR/USD spread and knocked some pairs (USD/CAD for instance) as much as 50 pips lower. That proved to be a speedbump as the dollar climbed back late.
EUR/USD started at 1.0845. slipped to 1.0832 on Bullard, the shot to a session high of 1.0870 after the options cut. But the patient sellers took over from there and drove it down to 1.0827.
USD/CAD made a series of higher lows but couldn't come anywhere near the European high of 124.25. A slide to 124.20 was picked on rising yields but we finish at 124.29 -- not a lot of opportunity there.
Cable fell almost a cent from the highs in early Europe then bounced to 1.5610 from 1.5540. But US dollar sellers had the upper hand late and the pair slipped to 1.5563.
The best action was in CAD. Oil had some volatility before late selling. The pair ripped to a 6-year high at 1.3024 but then careened down to 1.2963. Chinese import data later hurt oil and pushed it below $50 and that brought the pair back to 1.3000.
Gold was on a slow bleed lower for most of US trading. From $1110 at the start of trading, it slid to $1103 but heavy selling has appeared in the past few minutes, down to $1094.