Forex news for US trading on October 26, 2017
- ECB leaves rates on hold, QE to be EUR 30bln per month from EUR 60bln
- Draghi opening statement: Taper reflects confidence in move towards CPI target
- Draghi Q&A: Decision wasn't unanimous
- Draghi Q&A: The atmosphere in our meeting 'was pretty positive'
- BOC's Poloz: "There are a lot of things that have to come together" before another hike
- US wholesale inventories for September 0.3% vs 0.4% estimate
- US initial jobless claims in the current week 233K vs. 235K est
- US advance goods trade balance for September -$64.1B vs -$64.0B expected
- Fed Chair race down to Powell and Taylor
- US sells 7-year notes at 2.280% vs 2.275% WI bid
- US House clears way for GOP tax bill
- Puigdemont says he is not ready to call election
- KC Fed manufacturing index +20 vs +22 prior
- ECB's Visco said to be nominated for second term
Markets:
- Gold down $10 to $1267
- WTI crude up 45-cents to $52.64
- S&P 500 up 4 points to 2561
- US 10-yaer yields up 2 bps to 2.45%
- USD leads, EUR lags
The euro initially fell to 1.1750 on the ECB headlines, in part because QE was kept open-ended but after Draghi the selling extended down to 1.1700 and then the August low broke and the technical sellers piled in all the way to 1.1650, with a close on the lows. It's an ugly chart now with the long-touted head-and-shoulders materializing.
It was a disappointing day for the cable bulls. Almost every pip of yesterday's rally was wiped out in a slide to 1.3150 from 1.3275 at the start of European trading. The pain was already well-underway when US traders arrived, with the pair around 1.3200.
USD/JPY has been slow to embrace the bond yield story but it steadily climbed Thursday and finished at the highs, just above 114.00.
USD/CAD continued to shoot higher, albeit at a slower pace. Gained topped 1.2850 late as the market slowly prices out BOC action. More-dovish comments (see above) haven't gotten any traction yet but they could be another reason to buy the pair.
Technically, AUD/USD dropped below the 200-day moving average for the first time since June. The pair was flat around 0.7700 as US traders arrived but steady selling continued into the close at 0.7660.
Meanwhile, the New Zealand dollar continues to languish, dropping another 40 pips on the day. It's nearing the May low of 0.6814, which is significant support.
