Forex news for New York trade on June 17, 2019:
- June US Empire Fed manufacturing index -8.6 vs +11.0 expected
- US June NAHB housing market index 64 vs 67 expected
- Citi to merge currencies and rates divisions
- German econ min: EU-US must urgently start talk on trade deal
- BOC's Schembri doesn't comment on economy or interest rates
Markets:
- Gold down $2 to $1339
- WTI crude down 57-cents to $51.94
- US 10-year yields up 0.7 bps to 2.09%
- Bitcoin futures up 11.4% to $9405
- S&P 500 up 2 points to 2888
- EUR leads, GBP lags
The Empire Fed isn't often a market mover but it certainly raised some eyebrows today as it fell to the worst level since Oct 2016 in the swiftest one-month fall on record. The drop raised some fresh concerns about the US economy and hurt USD/JPY. The NAHB number also hurt sentiment.
However the Fed is the overarching theme and fear of a less-dovish statement helped the US dollar on most fronts. Commodity currencies were particularly soft after gaining earlier in the day. AUD/USD fell 20 pips and looks to be closing at a session low.
There was some extra demand for USD into the London fix and that sent AUD and GBP through the May lows, hitting stops in the process. Cable continued lower to 1.2534 and the worst levels since January 3.
The euro was strong at the start of US trading and was working to recover the loses from Friday but it couldn't hold gains and gave most of them up in the US afternoon to finish up only 10 pips at 1.1219.
Overall, the only meaningful moves were in AUD and GBP and they were generally technical. Watch out for UK CPI tomorrow and for more consolidation ahead of the FOMC.
