Forex news for US trading on June 16, 2016:
- US May CPI +0.2% m/m vs +0.3% exp
- June 2016 US Philly Fed business outlook index 4.7 vs 0.0 exp
- US weekly initial jobless claims 277k vs. 270K est.
- May 2016 US CPI 1.0% vs 1.1% exp y/y
- Brexit campaigns suspended after MP shot
- Multiple named witnesses say Jo Cox shooter was shouting 'Britain first'
- Exactly what David Cameron said on suspending the campaign and what we know about Thomas Mair
- ECB's Mersch warns against further moves
- US June NAHB housing market index 60 vs 59 expected
Markets:
- JPY leads, AUD lags
- Gold down $11 to $1280
- WTI crude oil down $1.89 to $46.15
- S&P 500 up 6 points to 2078
- US 10-year yields touch 3-year low but finish higher
From the FOMC, to Australian employment, the BOJ and the Brexit drama, it was probably the craziest 24 hours of trading of the year.
A full-on flight to safety was the theme early as euro, pound and commodity currency sales escalated. GBP/JPY was down more than 400 pips at the lows as the BOJ reverberations continued.
Sadly, markets reversed on a political assassination. For more on why, here are three reasons for the turnaround in sentiment.
The reversal was incredible as GBP/USD bounced off support near 1.4000 and shot all the way to 1.4254 in a steady squeeze and climb before settling back to 1.4210.
The euro made a similar U-turn in a bounce to 1.1234 but didn't make an intraday high.
The commodity currencies were pulled along by a reversal in stock markets but, interestingly, didn't react to sluggish commodity prices. Gold and oil both finished neat the lows with sharp losses.
