Forex news for North American trading on June 23, 2021
- NASDAQ closes at a new record but off the highs levels
- Fed's Kaplan: See's first rate increase in 2022
- John McAfee dies of suicide in prison cell - report
- US Sen. Tester: Getting closer on infrastructure talks
- More from Yellen: I would plead with Congress to raise the debt ceiling ASAP
- WTI crude oil futures settle at $73.07
- BOC Q2 GDP forecast likely too rosy after soft retail sales data
- Treasury Sec. Yellen: hoping to gain endorsement at G20 for global min. tax proposal
- Look for 200-dma to cap EUR/USD rebound - Credit Suisse
- U.S. Treasury auctioned off $61 billion of 5 year notes at a high yield of 0.904%
- Fed's Bostic: I am one of the 7 who sees rate rises in 2022
- Major European indices end the session mostly lower
- US warns on rising delta variant cases
- Dual bills on US infrastructure increasingly likely
- US weekly EIA crude oil inventories -7614K vs -3500K expected
- US May new home sales 769K vs 865K expected
- US June prelim Markit services PMI 64.8 vs 70.0 expected
- Fed's Bowman: Upward price pressures may ease as bottlenecks resolved
- Oil edges higher on report that OPEC+ ponders 500k bpd hike in August
- Canada May prelim retail sales -3.2% vs -5.7% prior
- US current account balance for the 1Q $-195.7 billion versus $-206.2 billion estimate
- The NZD is the strongest and the JPY is the weakest as NA traders enter for trading
The USD moved lower in early NY trading continuing the corrective moves to the downside for the greenback for the 3rd day in a row. However, as rates started to move back higher, and some technical breaks failed, the greenback reversed back higher. The declines were erased vs the EURCHF and CAD. The greenback moved off lower levels (but still closed lower) vs the GBP, AUD and NZD.
Overall, the NZD and AUD is ending the day as the strongest of the majors. The JPY is the weakest. The USD is in the middle of the rankings of the major currencies today.
Rates did move higher today, led by the 2 year yield which resumed its move higher. It is trading at 0.266% up 3.8 basis points on the day. The other parts of the yield curve were also higher with the 5 year up 2.6 basis points. The US treasury auctioned $61 billion of 5year notes that were met with so-so demand. The auction will continue tomorrow with sale of seven year notes.
Fed's Bowman, Bostic gave their post FOMC opinions today for the first time since the meeting. Bowman said there are 10 million people still without jobs, but inflation is likely to increase further. She did also add that supply chain bottlenecks could take some time to ease. Fed's Bostic said that he was one of the 7 fed officials who moved his dot to 2022 from 2023 and that the Fed is close to meeting "substantial further progress" standard. He also said that he expects 2 other tightening's in 2023 (he is normally not that hawkish). Later in the day, Fed's Kaplan (hawk) reiterated his previously expressed view that rates would begin to rise in 2022. The general comments from the Fed officials were lightly supportive of a higher dollar.
In other markets today:
- Spot gold gave up its gains and is down modestly. The current price is at $1778.24. That's down $0.52 or -0.03%. The high price was at $1794.98
- Spot silver is trading up $0.11 or 0.43% $25.88. That is still well off the high price of $26.30. The low price reached $25.76
- Crude oil rose of $0.45 or 0.62% to $73.30. That was off the high as $74.25 reached after the inventory data this week showed a larger than expected drawdown of inventories
- Bitcoin is up $270 or 0.83% $33,188. The digital currency moved up to a high price of $34,881 less than 24 hours day after trading is low as $28,800
In the US stock market, the NASDAQ index closed at its second consecutive all-time high. It was up 18.46 points or 0.13% at 14271.73. That still well off the intraday all time high at 14317.66.
For the second consecutive day, the S&P index, then a pointer to of its all-time high. Today the high price reached 4256.60. That was just short of the all-time high of 4257.11. The index closed lower at 4241.84. That was down -4.6 points or -0.11%.
The Dow industrial average is the weakest of the majors followed by -71.34 points or -0.21% to 33874.24.
