Here are the top headlines in the world of forex trading today:
- Initial jobless claims 332K vs 350K exp
- Canada Jan new house price index +2.2% vs +2.3% y/y exp
- US core PPI Feb: m/m +0.2% vs +0.2% exp
- US current account Q4: -110.4 bln vs -112.8 bln exp
- EU Summit begins in Brussels
- Schaeuble says Germany has weathered storm better than thought
- Canada’s Harper hints at race with US to sign free trade agreement with Europe
- Chatter about Canada building a refinery on the West coast
- S&P 500 gains 0.5% to 1562
- GBP leads, USD lags
The pound had its best day in months as it jumped above 1.51 from 1.4925 at the start of US trading. There was no definitive catalyst for the GBP/USD rally but a number of ideas circulated. It was a straight shot from 1.4945 to 1.5025 and then a second round of buying extended to 1.5119 before it ebbed to 1.5083.
The euro caught traders in a whipsaw is it took out yesterday’s low of 1.2923 only to be propped up by options-related buying ahead of 1.2900. From there, it reversed to the highs of the day at 1.3033.
USD/CAD fell to the lowest since late February. The Canadian housing numbers were slightly lower but the improvement in the US takes away some of the tail risks for the home sales market. Last at 1.0223.
AUD/USD poked above 1.04 alongside the general ‘sell the dollar’ theme. The more important level may be 1.0375 and it will be key to watch if the Aussie can close above.
