Forex news for US trading on Nov 11, 2015
- ECB examines possible extension of QE purchases to municipal bonds
- ECB Constancio says monetary policy must remain accommodative
- Bank of Spain: Q3 GDP up 0.8%
- ECB's Hansson says there's no need to lower deposit rate yet - Livesquawk
- ECB's Visco says low rates may fuel financial risk taking
- ECB's Draghi says priority is completing banking union
- BOE can take steps to cushion slowing growth says Haldane
- Wages pressures are still pretty subdued says Haldane
- Sweden to close borders to refugees
- S&P 500 down 6.7 points to 2075
- Gold down $3.4 to $1086
- WTI crude down $1.21 to $43.00
- GBP leads, USD lags
US trading dampened by Veteran's Day but it wasn't entirely quiet. The oil market was under constant pressure as the API from late yesterday reverberated in a thin market. WTI made a bit of a squeeze to $44.00 early but then was beaten down to $42.62, narrowly above the late-Oct low.
USD/CAD fell 50 pips to 1.3230 when oil caught the quick bid but stalled there and rebounded back to 1.3280 before a late drift to 1.3260. The bulk of the oil move came after London went home and that didn't leave anyone to buy USD/CAD.
The euro was hit by the ECB headlines but couldn't break below good bids at 1.0700. Two pushes close to that level were bought but EUR/USD rebounded to 1.0750 both times and that's where it finished, up 20 pips on the day.
The US dollar was moderately softer against JPY, in part due to risk aversion. Lower stocks weighed a bit and the pair tricked to 122.85 from 123.10.
Cable was the star of the show in European trading after the strong jobs report rekindled BOE hike speculation. Cable jumped above 1.5180 and then relentless bids helped it along and grew to a crescendo at the UK close in a rally to 1.5250. A minor dip back to 1.5200 was bought but it hasn't been able to take out the European high yet.
The Australian dollar was in a 0.7040 to 0.7070 range with traders understandably apprehensive ahead of the jobs report.
