Forex news for New York trade on September 14, 2017:
- August US CPI 1.9% y/y vs 1.8% y/y expected
- North Korea said to show signs of missile launch prep - report
- Canada July new housing price index +0.4% vs +0.4% m/m expected
- US initial jobless claim 284K vs 300K estimate
- Trump berated Jeff Sessions, forced him to quit and then changed his mind - report
- Trump says he respects Janet Yellen
- Schaeuble continues to weigh in on ECB policy
- Wilbur Ross says there are two major causes of the US trade deficit
- Tillerson: Iran is clearly in default of expectations from nuclear deal
- ECB's Mersch: No need to fear treaty change
- ECB's Weidmann: Eurozone inflation still 'quite moderate'
- Carney: BOE may need to adjust interest rates in coming months
- Word-for-word: What Carney actually said in his interview
- China will shut down all local Bitcoin exchanges by the end of September - report
Markets:
- Gold up $5 to $1328
- WTI crude up 41-cents to $49.71
- US 10-year yields flat at 2.18%
- GBP leads, NZD lags
The US dollar liked the CPI report but then began having second thoughts, especially because of talk of more North Korean missile tests. The CPI numbers were high but the unusually large jumps in shelter and hotel costs led some to believe it was more about one off factors than inflation.
USD/JPY rose above 111.00 from 1110.60 and EUR/USD hit a session low at 1.1836 but both reversed later in the day with USD/JPY cratering to 110.07 and EUR/USD up to 1.1913.
Cable was the star of the show on a clear hawkish shift from the Bank of England. US traders arrived to 1.3335 and it ticked another 65 pips higher with a steady bid that has run into a tough wall of offers just above 1.3400. Still, cable will finish the day up nearly 200 pips.
AUD/USD took a step back, hitting 0.7960 but recovered late to 0.8000.
USD/CAD continues to face the push-and-pull. It's managed to hang with the US dollar all week and a big part of that is oil, as it touched $50 today. The big question is whether other central banks will join the BOC with rate hikes.
