Forex news for New York trade on July 7, 2021:
- FOMC Minutes: Various participants saw taper 'somewhat earlier' than anticipated
- Fed's Bostic: At this point it feels the US will revert back to 2% inflation
- Reports of a blast in Dubai
- US EIA cuts forecast for 2021 world oil demand growth by 80K bpd
- US June JOLTS job openings 9.209M vs 9.310M expected
Markets:
- Gold up $6 to $1803
- US 10-year yields down 5.2 bps to 1.3179%
- S&P 500 up 14 points to record 4358
- WTI crude down $1.38 to $71.99
- NZD leads, EUR lags
The overall moves today ended up being small but there was some good two-way action and some important levels were breached, most notably with the euro falling to the lowest since April in a dip below 1.1800 and what also looks to be a close below that level.
Another medium-term break was in USD/CAD, which hit 1.25 for the first time since April. It was helped along by falling oil prices, which took another dive on a sources report saying the UAE wants to pump before oil goes out of favor.
One currency that held yesterday's lows was the kiwi as its star begins to grow brighter. Chatter about NZD is picking up though the results so far are fledgling outside of the crosses.
USD/JPY was lackadaisical despite the big bond move. It tried the low at 110.40 and the high at 110.80 but will round out the day right in the middle.
In terms of news, the main metrics of the JOLTS report cooled a bit but the market brushed it off. The Fed minutes led to a dip in the US dollar as the commentary wasn't as hawkish as feared. That didn't last though with the move now swallowed up in a 25-pip up-and-down.
