Forex headlines for July 10, 2013
- FOMC Minutes: About half of these participants indicated that it likely would be appropriate to end asset purchases late this year
- Minutes: Many members said labor improvement required before appropriate to slow the pace of asset purchases.
- Minutes: Several on FOMC saw QE tapering likely warranted soon
- US May wholesale inventories -0.5% vs +0.3% expected
- Goldman sees Q2 GDP tracking at +1.3% following inventories
- IMF’s Blanchard:China faces tough choice on investment and shadow banks
- Dijsselbloem hints at more aid money for periphery
- US 10-year auction sells at 2.670% vs 2.668% expected
- S&P 500 flat at 1652
- Gold flat at $1251
- WTI crude up $2.45 to $105.98
- US 1o-year yields rise 5 bps to 2.68%
- JPY leads, AUD and NZD lag
Traders in Asia are waking up to whipsaws on their FX charts. Here’s what happened: The main newswire headlines on the FOMC minutes and they were dovish but they all seemed to miss the line in the economic projections saying “about half of participants indicated that it likely would be appropriate to end asset purchases late this year.” The initial move lower in the dollar was on the initial headlines, the retracement was when traders uncovered the second line.
Overall, everyone is scratching their head and waiting for Bernanke.
Ahead of the FOMC, the euro was bubbly for no particular reason. The Australian dollar was tracking lower, largely due to worries about today’s employment data and the soft numbers out of China.
