Forex headlines for September 26, 2014:
- Bill Gross quits PIMCO to join Janus Capital
- Dan Ivascyn will be new PIMCO chief investment officer
- US Q2 GDP grows at the fastest pace since 2011 on growing investment
- Spain hikes growth forecasts in new budget
- September 2014 Michigan consumer sentiment final 84.6 vs 84.7 prior
- Germany confirmed at AAA by DBRS
- CFTC Commitments of Traders: Specs make big bets against the yen
- Secret recordings from Fed released (don’t believe the hype)
- S&P 500 up 0.8% to 1982 but down 1.4% on the week
- Gold down $3.50 %o $1218
- WTI crude up 93-cents to $93.46
- US 10-year yields up 2.7 bps to 2.53%
- USD leads, NZD lags
The US dollar finished at or near the best levels of the week against virtually every other major currency. In a trend like this it doesn’t even really matter what the news is. If it’s good news for the dollar the bulls buy more. If it’s bad news, they buy the dip.
Yesterday’s price action was a good tell. The stock market got hammered and USD/JPY hardly fell and even held the previous day’s lows. No surprise to see the pair more than 100 pips off the lows and hit a cycle high of 109.56 today before 25-pips of late-day selling.
EUR/USD started falling pretty much as soon as US traders arrived and hit stops below 1.2720 in a relatively quick move down to 1.2680. Similar story in cable as it slipped down to 1.6250.
USD/CAD got into the act with a break of 1.1150 and up to 1.1169.
The Bill Gross news hit Treasuries as everyone tries to figure out how the money will make its way to Janus from PIMCO, if at all.
