Forex trading headlines for May 6, 2013:
- Draghi talks negative rates
- Draghi repeats that ECB ready to act again if needed
- Mersch: ECB must be mindful of the limits of monetary policy
- Russia extends Cyprus loan repayments
- April Canadian Ivey PMI 50.9 vs 58.0 exp
- March Canadian building permits +8.6% vs 1% exp
- IMF sees ‘very little progress’ on tackling Greek tax evasion
- S&P 500 up 0.2% to 1617
- CAD leads, AUD lags
The overall theme in US trading was a quiet advance in risk trades, led by the stock market. That helped yen crosses, albeit modestly.
The most-exciting move of the day came when Draghi mentioned negative rates and the euro fell 50 pips. He didn’t add much that he didn’t say on Thursday but it was a reason to sell on an otherwise quiet day. Bids at 1.3050 held with more at 1.3030. Spot is at 1.3077.
AUD was soft in Asia and Europe but bottomed early in US trading at 1.0222 and has edged back to 1.0251. The RBA decision tonight is razor thin.
