Forex news for November 12, 2014:
- Levels of unemployment in eurozone unacceptable says Draghi
- October 2014 Canadian Teranet/National bank house price index 0.2% vs 0.4% prior m/m
- Bank of Canada’s Schembri sees risk of house price correction
- BOJ’s Sato says assessment is that Japanese economy is recovering moderately
- Fall in energy prices likely to have negative effect on CPI expectations says BOJ’s Sato
- US’s Jack Lew joins the ranks calling Europe and ECB action a dud
- US Sept wholesale sales +0.2% vs -0.1% expected
- Kocherlakota says gas prices falling are stimulus, can’t expect it to be an engine of growth
- Bundesbank sees signs of housing bubbles
- Gold down $5 to $1158
- WTI crude down $1.06 to $76.87
- Brent crude below $80 for the first time since 2010
- NZD leads, GBP lags
The European Space Agency took 10 years to put a spacecraft on a comet, which is about the same amount of time it will take for the ECB to buy bonds.
Headlines weren’t a big factor on the day. A solid US dollar bid started late in European trading and continued after a softish 10-year auction. USD/JPY marched up to 115.58 from 115.00.
The big story on the day was the BOE inflation report and it sent the pound to a 14-month low as some serious questions are emerging about the need to hike rates in the UK. Most of the damage was earlier but the headline was that last week’s low of 1.5791 gave way in a slide to 1.5780.
The euro took four runs at 1.25 in total today and was beaten back on every one. The downside began to crack in US trading in a slide down to 1.2425 and we finish close to the lows.
The commodity currencies were strong despite lower commodity and stock prices. There was no particular reason for the strength but USD/CAD slipped below 1.13 before rebounding and AUD/USD rose as high as 0.8730. Both gained about a quarter-cent on the day.
