ForexLive Americas FX news wrap: US retail sales miss but trade worries rise
Forex news for North American trade on September 14, 2018:
- US August advance retail sales +0.1% vs +0.4% expected
- August prelim U Mich consumer sentiment 100.8 vs 96.6 expected
- Raab after call with Barnier: There remain some substantive differences
- Barnier: Substantive differences remain on Ireland, GIS
- White House: Trump has been clear will take action on China
- Mary Daly named as new San Francisco Fed President
- Baker Hughes US oil rig count 867 vs 860 prior
- Paul Manafort: "I plead guilty"
- Trump wants to proceed with $200 billion tariffs with China
- Atlanta Fed GDPNow at 4.4% vs 3.8% last. NY Fed GDP Nowcast is much lower.
- Fed's Evans: It's entirely natural to think short-term neutral may rise above long-run estimate
- US business inventories for July 0.6% vs. 0.6% exp.
- Fed's Evans: Premature to put too much weight on shape of yield curve
- Canada's Freeland not planning more NAFTA talks until at least Monday
- US August industrial production +0.4% vs +0.3% expected
- Fed's Evans: Economy firing on all cylinders, sees 3% GDP
- Fed's Kaplan: US consumer is very strong
- US import prices -0.6% vs. -0.2% expected. Export prices -0.1% vs. 0.0% expected
- CFTC Commitments of Traders: GBP shorts remain the largest spec position
- Gold down $7 to $1194
- WTI crude up 35-cents to $68.93
- US 10-year yields up 2.4 bps to 2.99%
- S&P 500 flat at 2904
- USD leads, AUD lags
It was a full day of headlines on Friday with the main one a report that Trump has told his cabinet yesterday he wants to impose China tariffs. That took USD/JPY off the high of 112.17 and back down to 111.90 but it was stubbornly strong again and back flirting with 112.00.
EUR/USD was a bigger mover on the day, in part due to a report saying some members of the ECB wanted to emphasize downside risks. Yesterday's rally was completely wiped out in a 60 pip fall to 1.1627.
USD/CAD was hurt by the continued blowout in Canadian oil differentials and more chatter about a deadlock at NAFTA talks. The CBC said Canada's prepared to miss the end-of-month US deadline and see what happens.
AUD/USD was on its backfoot on reports of China tariffs and is slated to finish near the lows and down 40 pips to 0.7155. That takes the shine off a nice two-day bounce from 0.7085.
Cable news from Raab and Barnier wasn't a big surprise and didn't have much of an effect. Cable was caught in a broad US dollar bid that was built on solid data and talk about the Fed hiking beyond long-term neutral next year.
Have a great weekend.