Forex news for US trading on September 7, 2017:
ECB/Draghi
- Draghi: Recent volatility in EUR requires close monitoring, is a source of uncertainty
- Draghi: I don't think we are in a period of uncertainty
- Draghi Q&A: Following appreciation of euro, financial conditions 'unquestionably' tightened
- Draghi Q&A: Eurozone recovery is robust and broadbased
- ECB forecasts: 2017 growth forecast boosted to highest since 2007. Inflation trimmed
- ECB said to study options continuing QE that don't require a tweak to the rules
News
- White House said to be considering at least 6 people for Fed chair
- Trump: I would prefer not going to the rout of military action on North Korea, but it could happen
- White House budget chief says if tax reform passes, it will be retroactive
- Republican Senators will take another crack at Obamacare repeal
- Hurricane Jose strengthens into Category 2 storm
- Fed's Mester still comfortable raising rates again this year
- Mester: Further gradual rate rises will be needed
- Mester to speak on economic outlook and monetary policy
- Weekly US oil inventories +4580K vs +4000K expected
- EIA natural gas storage change 65 BCF vs 64 BCF est.
- Senate advances Quarles nomination to Federal Reserve
- US House speaker Ryan: Plans to unveil tax plan this fall. Get it done this year
- Weekly initial jobless claims 298K vs 245K expected
- Canada July building permits -3.5% vs -1.5% expected
- US second quarter final non-farm productivity +1.5% vs +1.3% expected
Markets
- Gold up $14 to $1348
- WTI Crude down 5-cents to $49.11
- US 10-year yields down 6 bps to 2.04%
- S&P 500 float at 2465
It was all about the ECB to start the day and all about the US dollar later as falling Treasury yields undercut the dollar.
The euro was the top performer despite a half-hearted attempt by Draghi to do some jawboning. In hindsight, he could have said almost anything and the euro was going to go higher anyway.
He said a decision on the taper is likely in October and that's when EUR/USD kicked up to 1.2059 from 1.1950 at the whipsaw low on the statement. It was chop from there to a finish at 1.2025.
USD/CAD's finish was also notable as it was at the low of the day at 1.2119, that's below the latte 2015 low and clears the way for a test of 1.20 or below.
Cable was messy as it ran to a high of 1.3116 in the dollar selling on the ECB before falling back to 1.3062 and then climbing to 1.3099 to finish.
AUD/USD also had a strong day and closed at a session best 0.8047, up from 0.7970 in Asia.
