Forex headlines for April 15, 2014:
- US CPI March m/m sa +0.2% vs +0.1% exp
- US NY Fed Empire manufacturing index April 1.29 vs 8.00 exp
- Canadian manufacturing sales Feb m/m +1.4% vs +1.0% exp
- Canadian March existing home sales +1.0% vs +0.3% prior
- US April NAHB housing market index 47 vs 49 expected
- Japan will downgrade economic assessment in April report – Nikkei
- No comments on monetary policy or economy in Yellen speech
Fed discount minutes: Winter weather constrained economic activity - Portugal keeps budget deficit forecast at 2.5% of GDP
- BOJ’s Kuroda told Abe BOJ policy to be adjusted as needed
- 11 killed in the Ukrainian special forces operation in Kramatorsk
- Putin said Ukraine crisis “sharply escalated” today
- S&P 500 up 12 points to 1843
- Gold up $25 to $1303
- WTI crude down 50-cents to $103.50
- USD leads, AUD lags
The main headlines on the day were from Ukraine. Separatists seized about a dozen buildings on the weekend and Ukraine followed through in a threat of military retaliation by taking an airfield. A general promised more.
Those headlines knocked down risk trades and sent USD/JPY down to 101.50after a test of 102.00. EUR/JPY slumped to a one-week low but didn’t seriously challenge the key 140.00 level.
The Nasdaq fell below the Feb lows to the lowest since November and that caused a blowout in stocks. The selling exhausted shortly afterwards and the reversed. The turnaround slapped a nice, potential reversal on the chart and that will be a focus.
EUR/USD chopped around 1.3800 in Europe and then bounced up to 1.3833 on broad US dollar selling as risk aversion increased. Ukrainian trouble also tends to boost the euro as it’s a nearby safe haven.
Cable touched the highs of the week at 1.6749 but showed no enthusiasm at the top and faded back to 1.6725.
Gold fell, partly on a report about Chinese companies using gold stockpiles in the shadow banking and fake invoicing industry. That’s a story that could hang around.
Be sure to console Eamonn about the rumored breakup of AC/DC.
