Forex headlines for June 27, 2014:
- June US Michigan consumer sentiment index final 82.5 vs 82.0 exp
- Barclays tip their hat for Q3 FX trades and the euro is in the crosshairs
- June German HICP flash 1.0% vs 0.7% exp y/y
- May Canadian PPI -0.5% vs 0.0% exp m/m
- Junker nominated for EC president, as expected
- Rates this low don’t fulfill their economic function says Schaeuble
- Donetsk separatists agree to proposal to extend cease-fire
- Merkel says prepared to take “severe measures” if no progress in Ukraine
- How bad is the FOMC at projecting growth?
- BOC’s Scembri: Reiterates Bank of Canada focusing on 2% inflation
- Money pouring out of European stocks – BofA
- S&P 500 up 0.2% to 1961, down 0.1% on the week
- CHF leads on the day, NZD lags
- NZD leads on the week, USD lags
As far as Friday’s in the middle of Summer go, it was decent. The euro had a sneaky good day and took advantage of broader USD weakness. The thinking is that Draghi won’t have any new tricks on Thursday. The MNI sources story yesterday continues to reverberate and it shows that the ECB is on hold for 6-9 months and doesn’t want to do QE. EUR/USD finished the week at 1.3650.
The early story was weakness in stocks but — shocker — the market turned around once again and stocks finished higher on the day. Overall the range was very tight at 101.35 to 101.45 but we finished at the top end.
Cable was just as quiet but caught a late bid and ramped up to 1.7033 after spending most of the day at 1.0715.
Once again the Canadian dollar was a star performer. There wasn’t a fundamental story but USD/CAD longs continue to get squeezed out and there has been nearly no appetite to buy dips. We close nearly the weekly low at 1.0665.
NZD and AUD grinded higher to 0.8780 and 0.9424. NZD/USD is getting interesting as it flirts with the 2011 high.
