Forex headlines for Oct 8, 2014:
- FOMC minutes show no sign of altering guidance on considerable time. Fresh concern on dollar
- FOMC meeting minutes: full text
- Hilsenrath: Fed worried about strong dollar and weak overseas economies
- Alcoa – Q3 adj EPS at 31cents vs. 22c expected
- Fed’s Evans preaches exceptional patience in raising rates
- Fed’s Evans says low US rates partly reflects safe haven status
- September 2014 Canadian housing starts 197.3k vs 196.1k exp annualised
- US weekly crude oil supplies rise 5m barresls versus forecast of +1.5m
- US sells 10-year notes at 2.381% vs 2.370% WI
- BOE MPC preview – Interest rate rises ARE coming, and you can take that to the bank
- The best yen forecaster isn’t getting cold feet
- WTI crude down $1.00 to $87.85
- S&P 500 up 33 points to 1968
- Gold up $13 to $1222
- NZD leads, JPY lags
What a day:
The US dollar rallied around 30 pips on most crosses in the hour or so before the FOMC minutes as the market tried to sniff out something hawkish. The market was dead wrong — the Fed didn’t offer anything dovish and the dollar absolutely ripped.
Cable led the way, soaring to 1.6180 from 1.6034. The commodity currencies were next in line, gaining more than 100 pips from the lows.
The euro climbed to 1.2740 from 1.2655. USD/JPY was a bit less impressive but still tumbled to 108.13 from 108.70.
I’m keeping a close eye on that 107.75/108.00 zone of support in USD/JPY. Most FXLivers see a correction in the dollar but it’s not a done deal until that zone breaks.
The S&P 500 hit the lowest since Aug 8 at 1925 and then ripped to 1969. In the end, it was the largest percentage gain since Oct 10, 2013.
Oil is in very bad shape but managed to bounce 80-cents from the lows. There’s lots of talk about a US oil glut.
Stay tuned for Asia-Pacific trading: It’s Truckometer Day!
