Forex news for North American trade September 19, 2018
- Raab: We will not hold a second referendum
- US August housing starts 1282K vs 1238K expected
- US Q2 current account deficit $101.5 billion vs $103.4 billion expected
- Pompeo invites North Korea to talks
- Ireland PM Varadkar: No closer to Brexit deal than in March
- Juncker: EU and UK are far away from a Brexit deal
- Hammond: Confident we will deliver the Chequers Brexit deal for Britain
- Trudeau: Canada wants to see movement before signing NAFTA deal
- Austria chancellor Kurz says Brexit deal needed to avoid hurting both sides
- EIA weekly US oil inventories -2057K vs -2500K expected
- Atlanta Fed GDPNow remains at 4.4% in their current estimate
- US MBA mortgage applications w.e. 14 September +1.6% vs -1.8% prior
Markets:
- WTI crude up $1.28 to $71.13
- S&P 500 up 4 points to 2907
- US 10-year yield up 2 bps to 3.07%
- Gold up $5 to $1204
- AUD leads, CHF lags
It was another lively day in cable but most of the action was in Europe with a high CPI reading pushing it to the highs of the day at 1.3215 only to see it rattled by Brexit headlines and fall just below 1.3100. From there it stayed inside that range by bounced around on varying headlines with Raab adding some optimism and Juncker raining on the parade. Last at 1.3150, virtually flat on the day.
The euro came under some pressure as New York arrived and slid to 1.1650 but found support there and rebounded to 1.1685 then closed a shade below.
There was lots of talk about rising Treasury yields but that didn't help USD/JPY as it hit at session low of 112.16 in North America before grinding back to 112.25 in quiet trade.
The bigger movers were the commodity currencies as they held a steady bid throughout the day. AUD/USD climbed up to 0.7267 and NZD/USD to 0.6617.
USD/CAD was rattled by a NAFTA headline and jumped to 1.3020 from 1.2970 but soon turned back lower and finished down 60 pips on the day to 1.2914. There wasn't any NAFTA news but there seems to be building optimism.
