Forex news for US trading on Feb 1, 2016
- January ISM manufacturing index 48.2 vs 48.5 expected
- January 2016 US Markit manufacturing PMI final 52.4 vs 52.7 exp
- December 2015 US personal income 0.3% vs 0.2% exp m/m
- US December core PCE 1.4% vs 1.4% y/y expected
- Fed's Fischer: Inflation will likely remain low for 'somewhat longer'
- Fed's Fischer: Hopes to see signs of wage inflation
- Fed's Fischer Q&A: Need to 'wait and see' whether volatility hits US economy
- S&P takes the axe to the oil industry
- Draghi: Cyclical recovery should also be supported by effective structural policies
- Brazil's Zika outbreak worse than believed - minister
- S&P cuts BHP Billiton and puts it on credit watch for another downgrade
- Atlanta Fed GDPNow sees Q1 growth at 1.2%
- Draghi: Cyclical recovery should also be supported by effective structural policies
- JPMorgan global manufacturing PMI 50.9 vs 50.7 prior
- ISM's Holcomb says rise in new orders and production 'good news'
- December 2015 US construction spending +0.1% vs +0.6% exp m/m
- Persian gulf Arab states don't support emergency OPEC meeting -report
- RBC Canadian manufacturing PMI 49.3 vs 47.5 prior
- ECB's Smets: It's all about the projections
- Gold up $11 to $1129
- WTI crude down $2.16 to $31.46
- US 10-year yields up 3.4 bps to 1.955%
- GBP leads, USD lags
The US dollar was under broad pressure in New York trading Monday with the pound, euro and commodity currencies taking full advantage.
Most impressive was CAD as it climbed despite a 6% drop in oil. There was widespread talk of leveraged fund selling and that drove USD/CAD down to 1.3909 at the lows from 1.4025 at the start of US trading.
AUD/USD was also strong ahead of the RBA as it ticked up to 0.7113 ahead of today's RBA decision. It started at 0.7075 and was quiet in the early going but picked up a strong bid late. It was a similar story in NZD, which slowly climbed to 0.6525 from 0.6475 and then quickly jumped to 0.6555 as stops were hit
USD/JPY was under some pressure early and hit a session low of 120.68 after the ISM data from 121.30. Risk trades improved throughout the day but the bounce in the pair was modest and we finish at 121.00. The speculative market is licking its wounds so a quieter day is no big surprise.
EUR/USD gained in Asia and Europe to hit 1.0910 late in the European day. It flattened out from there and is at 1.0891.
The big mover on the day was cable as it climbed relentlessly to 1.4445. It's up almost 300 pips form the Friday low in what's been a one-way trade. Heavy buying into the London fix continued late in US trading and we finish right near the session highs -- that's a great sign going forward.
