Forex news for North American trade on June 20, 2018:
- Brexit: May fends off Brexit rebellion in vote win
- The ECB is more worried about a trade war than it's letting on
- US Q1 current account deficit $124.1 billion vs $129.0 billion expected
- CEO says Saudi Aramco can pump at least 2 million barrels per day more if needed— report
- Tether sooths nerves after law firm checks finances
- ECB said to see higher reinvestments from QE next year
- Ross: Tariffs on Mexico and Canada could be lifted if NAFTA talks improve
- EIA crude oil inventories show -5914K vs. -2500K
- BOJ's Kuroda: Japan's economy has improved significantly
- US May existing home sales 5.43m vs 5.52m expected
- RBA's Lowe: Sees global factors at work in inflation situation
- ECB's Draghi: Factors holding back wage growth are gradually waning
- Powell: Repeats that case for continued gradual hikes is 'strong'
- China set to take strong countermeasures against US tariffs - report
Markets:
- Gold down $5 to $1269
- WTI crude up $1.15 to $66.22
- S&P 500 up 5 points to 2767
- US 10-year yields up 3.3 bps to 2.93%
- GBP leads, NZD lags
Headlines weren't much of a driver in the foreign exchange market on Wednesday but the Brexit vote win for May led to a small rally in cable above 1.3200 that was beaten back shortly afterwards.
The general theme was positive sentiment as trade worries continue to be brushed off. USD/JPY edged below 110.00 in early New York trade then started a steady march higher to 110.40 and is now nearly flat on the week.
USD/CAD was another mover as it climbed to a fresh one-year high at 1.3321 despite a climb in oil prices and some constructive talk on trade from Ross and Freeland.
EUR/USD chopped in the 1.1550 to 1.1600 range and finished near the middle. Some ECB leaks didn't inspire any moves in the market.
Keep an eye on NZD/USD as it hits a session low late. It's trading at 0.6861, just above the May high of 0.6850 and with New Zealand Q1 GDP only a few hours away.
