USD sold on Global Growth concerns
- Intro Paragraph Text Here.
- NY Fed GDP Nowcast steady at 2.6%
- Fed's Evans on the wires again
- USDJPY responding to Trump's tweet
- Baker Hughes oil rigs 888 versus 886 prior
- Trump says US will hopefully make a deal with China
- May to the rescue. If you want a job done properly...
- US Treasury 10-year yields fall to 2 week low
- Global growth forecasts are down
- Federal Reserves Evans on the wires
- Total US Household debt now $837bln higher than crisis era-peak
- Slowing Global growth comments from Fed cause dollar to slide
- Snapshot of the weakest and strongest currencies as US equites open down
- USDJPY down to daily 50EMA as risk off tone enters
- US October industrial production +0.1% vs +0.2% expected
- USDCAD pulls away from the 200EMA on the 1 hour chart
- Canada manufacturing sales for September +0.2% versus 0.1% expected
- ECB's Weidmann on the wires
- A quick look at GBPUSD on the 1 hour chart.
- Heads up - Tech stocks may be in for a bad day
- May has little chance of winning a Parliamentary vote
- UK Trade Secretary Liam Fox saying, 'No deal could happen'
- Trade ideas thread - Friday November 16
Markets
The day started off slowly with few moves in the currency markets until a flurry of dollar selling which was triggered by a bearish outlook from the Fed on Global growth. This was perceived to be a note of caution in the Fed's hiking path and the USD Index retreated from the 97.00 daily figure. The Index needed to break clear of that level to maintain it's march higher. I did a quick look at some of the reports I could find on Global Growth and the consensus was for a slowdown. However, Fed's Evans spoke later in the session around 1800 GMT and questioned the reality of vs the fear/prediction of a global slowdown in growth.
A beat in the Canadian manufacturing sales m/m helped USD/CAD moved down through it's weekly lows and price close beneath the 4 hour 100EMA. Initially rising oil prices assisted CAD with it's bullish charge before it gave up some it's gains as Oil sold off again and USD CAD retraced on the day up towards the 50% move of it's downward fall.
AT around 1745GMT Trump issued a number of positive statements about his willingness to do a trade deal with China. However, the relief in US stocks and the USD/JPY being bid was short. The bottom line was that nothing had changed and this was merely rhetoric from the US President. However, it does give a taste of how the market would respond to a conciliatory Trump.
Thankfully Brexit news receded to a mere trickle of the occasional update, which I must say was a most welcome change from the barrage of updates received over the last few days. Theresa May has decided to take over the role of Brexit Secretary since no-one really wants the job. Who can blame them? Other then that we are marking time with the Brexit saga as May heads toward taking Parliament a deal they will reject. She is a remarkable lady to undertake her role in such testing circumstances. Have a great weekend one and all and Adam will be back next week to resume your normal service. Take care one and all.
p.s The strongest currency was the JPY as a risk off mood lingered across the entire session. USD was sold across the board.
