Forex news for US trading on May 25, 2017:
- OPEC agrees to keep same output targets for next 9 months
- Fed's Brainard: The global economy is brighter than its been in the past two years
- US April advance goods trade balance -$67.6B vs -$64.5B expected
- US initial jobless claims 234K vs 238K estimate
- US April wholesale inventories -0.3% vs +0.2% expected
- ECB's Constancio: Overall risks remain tilted to the downside
- US sells 7-year notes at 2.060% vs 2.060% WI bid
- Former ECB governing council member and Greek PM injured in car explosion - reports
- Algerian oil minister loses his job during the OPEC meeting
- South Africa leaves rates unchanged at 7.00%, as expected
- South African central bank says inflation surprised on downside but remains high
Markets:
- WTI crude down $2.71 to $48.64
- Gold down $2 to $1256
- S&P 500 up 11 points to record 2415
- US 10-year yields flat at 2.25%
- USD leads, AUD lags
It was a wild ride for oil and bitcoin traders today but less-dramatic for the rest of the market.
In US trading, the euro ranged between 1.1190 and 1.1225. It had drifted down into that range from a high of 1.1250 in Europe. The comments from Constancio and the US economic data was generally ignored.
USD/JPY ranged around 111.80 and that's where it finished.
Cable was under constant pressure after the GDP report. It rose above 1.30 but skidded down to 1.2950 and then made a could solid efforts at breaking yesterday's low of 1.2925. So far the efforts have failed.
USD/CAD fell a cent yesterday and gained 65 pips today. The drop in oil prices was the main driver for the gains up to 1.3475 from 1.3400 early in the day. Considering that crude was battered by $2.65, the moderate drop in the loonie is almost a victor for the CAD-bulls.
AUD/USD similarly struggled in a slide to 0.7454 from 0.7510. The damage was mostly done in Europe but some modest selling hit stops below yesterday's US low of 0.7455. The pair is limping to the finish line, along with most commodities.
