Forex news for New York trading on June 5, 2019:
- US May ISM non-manufacturing index 56.9 vs 55.4 expected
- US ADP May employment +27K vs +185K expected
- Trump: Every signal is that China wants make a deal 'I have no doubt about it'
- Barkindo: OPEC+ will take economic bearishness into account
- Sen. Grassley predicts the US will not impose tariffs on Mexico
- Weekly US oil inventories +6771K vs -2000K expected
- Markit US services PMI for May (F) 50.9 vs 50.9 estimate
- WH trade advisor Navarro: Tariffs with Mexico may not have to go into effect
- Fed's Brainard: Our job is to sustain the expansion
- Canada Q1 labor productivity +0.3% q/q vs +0.4% expected
- Beige Book: Economic activity expanded at a modest pace
- Rex Tillerson sees US-China resolution on trade but has concern China will walk away
Markets:
- S&P 500 up 23 points to 2826
- WTI crude down $1.73 to $51.75
- US 10-year yields down 1 bps to 2.12%
- Gold up $4 to $1329
- NZD leads, AUD lags
Wednesday's trade was quiet once again in Asia and early Europe but lively once the US arrived. The worst ADP employment report in 9 years sparked a round of fear and USD selling but it was halted quickly on skepticism about volatile jobs reports. Then a stronger ISM report reversed the move and the dollar finished higher against everything but the kiwi.
A rout in oil prices and uncertainty in stock markets along with more Fed comments made for a lively session. Optimism about a US-Mexico deal is mounting but that will be a factor in the hours ahead as talks wind down for the day.
EUR/USD rose as high as 1.1306 before reversing to close at the lows of the day near 1.1225.
USD/JPY touched the lowest since early January after the ADP data but also reversed more than 60 pips on the day to finish at 108.42.
Cable tried to rally early in US trade but finished down a dozen pips on the day.
The Canadian dollar finally wilted under the weight of falling oil prices and that boosted USD/CAD to 1.3418 from a low of 1.3363. Oil sank after another huge build in US inventories and hit $50.60 before a $1.10 bounce in the second half of the day.
