Forex news for Americas trading on September 13, 2019:
- US August advance retail sales +0.4% vs +0.2% expected
- U Mich Sept prelim US consumer sentiment 92.0 vs 90.8 expected
- ECB went overboard with latest stimulus package - Weidmann
- Irish PM says not sure Johnson will be able to make compromises necessary
- Baker Hughes US oil rig count 733 vs 738 prior
- NY Fed Nowcast sees Q3 GDP at 1.59% vs 1.55% last week
- US July business inventories +0.4% vs +0.3% expected
Markets:
- Gold down $10 to $1489
- WTI crude down 17 cents to $54.92
- US 10-year yields up 12 bps to 1.90%
- S&P 500 down 3 points to 3006
- GBP leads, NZD lags
The pound is poised to finish the day up more than 150 pips to the best levels since July 25 as optimism creeps in that Boris Johnson will be able to find some tweak to the Irish border backstop to bring a Brexit deal back for a vote. Cable rallied early in European trade, paused on a round of USD strength and then found more bids on late-day reports about negotiators making progress (or at least a better tone) and we finish near 1.25.
USD/JPY didn't get much help from rising Treasury yields despite the 10-yera taking out some key levels. That may reflect worries about risk trades around the Fed.
The dollar did make progress against the loonie and kiwi. In particular USD/CAD rose 65 pips on a steady bid that accelerated since the start of North American trade. Oil wasn't much of a factor this pair may be more-sensitive to yield differentials because they're two of the high-yielders.
EUR/USD rose for the second today and hit 1.1109 at the highs but couldn't get above the 1.1010 level and slipped back to 1.1073 after good US retail sales.
Have a great weekend.
