ForexLive Americas FX news wrap

  • US initial jobless claims 253k vs 265k exp
  • Hollande: The 'sooner the better' for implementing Brexit
  • ECB extending bond buys 6-9 months likely in April -Barclays
  • Strong bid in US 10-year TIPS sale
  • US June existing home sales 5.57m vs 5.48m expected
  • ECB's Weidmann doesn't rule out discussion on QE rules
  • Draghi leaks G20 message
  • Eurozone has weathered Brexit says Draghi
  • Philly Fed business outlook -2.9 vs 4.5 expected
  • Canada May wholesale trade sales +1.8% vs +0.2% expected
  • The Chicago Fed national activity index for June comes in at +0.16 vs -0.20 est.
  • IMF: G20 needs urgent action to contain risks and revive growth

Markets:

  • WTI crude down $1.13 to $44.62
  • S&P 500 down 8 points to 2162
  • Gold up $16 to $1332
  • US 10-year yields down 1.7 bps to 1.56%
  • JPY leads, NZD lags

There was plenty of speculation that Draghi would do something or hint at something regarding future actions or tweaks in the bond buying program but he said none of those things were discussed. As he started out, he repeatedly implored governments to implement structural reforms. That was taken as a sign (correct) that nothing was coming today and the euro rallied to a high of 1.1060 but after the spike up, there was no follow through and nothing really changed and the euro sank back to 1.1010. Later in the day it hit 1.0980 but finishes back virtually unchanged. In short, we didn't learn anything new from Draghi and the market didn't move.

USD/JPY took a spill in Europe after an interview with Kuroda ruled out helicopter money. The 120 pips fall bounced after it was revealed the comments were recorded more than a month ago. Still, the damage was done and USD/JPY finished down deeply.

GBP/USD finished a touch higher as May travelled to France. There were no Brexit developments to dwell on. A European dip to a session low of 1.3150 was tested again in US trading and it held. Subsequently the pair climbed to close near the best levels of US trading.

AUD/USD trading was choppy around 0.7500 in a narrowing range. Commodity prices moves were solid but the market is hemming and hawing on the RBA and the global economy and that's keeping the Aussie restrained.

Similarly, the kiwi was hit when the RBNZ pre-committed to an August cut but there was no follow-through. NZD/USD fell as low as 0.6950 but finished a half-cent higher in a sign of resilience.

USD/CAD also showed some resilience early but it couldn't withstand and relentless assault from falling oil prices. USD/CAD eventually touched 1.31 but looks to close about 20 pips below. Oil fell $1.20 in a steady slide. Talk of a one million barrel oil build at Cushing helped to add downward pressure.