Forex news for New York trade on June 21, 2017:
- May US existing home sales 5.62M vs 5.55M expected
- Fed's Evans: Balance sheet plan not likely to depend on economic data
- Fed's Harker: Wouldn't want to start unwinding balance sheet in Sept if inflation weakens
- Weekly US oil inventories -2451K vs -1200K expected
- Schaeuble: The danger of deflation in eurozone has clearly been dispelled
- BOE's Haldane says risk of tightening too early has fallen
- Toronto house prices are down 12% in less than three months
- Mexican finance minister says rate-hike cycle is likely near end
- Gold up $3 to $1246
- WTI crude down $1.02 to $42.48
- US 10-year yields flat at 2.16%
- S&P 500 down 1 point to 2435
- GBP leads, CAD lags
The calendar was light but the market moves were decent as the US dollar climbed early then eased off.
USD/JPY was near the session low of 111.07 as New York arrived but then it caught a steady bid that continued through the options cut and hit 111.74. That was close to yesterday's high and offers there capped the move and led to a steady slide back to 111.25.
EUR/USD chopped around 1.1140 in the early part of North American trade but then found buyers later in the day in a steady climb to 1.1168. The high was just better than Tuesday's best level but there was no follow through. Last at 1.1162.
Cable hit 1.27 as May eased away from a hard Brexit in the Queen's speech but the momentum didn't last and it fell back to 1.2650. That was still enough to make GBP the best performer but the cable gain of 34 pips is hardly enough to erase the recent damage.
USD/CAD was a bigger mover as it rose more than 50 pips to 1.3322. It climbed to an 8-day high and was briefly above the 200-dma. The gains came as oil slumped another $1 and briefly touched the lowest since August 2016. Worries about Toronto housing are beginning to percolate.
AUD/USD hit a daily low in NY trade but the slip to 0.7553 didn't inspire any follow through or hit stops.
The focus in the hours ahead will be the kiwi and the RBNZ decision. There are some jitters heading into a decision that will likely feature some jawboning. NZD/USD finished the day down 20 pips to 0.7222.