Forex headlines for August 13, 2013:
- US retail sales headline misses but details boost dollar
- US import prices rise less than expected
- US June business inventories were flat compared to 0.2% expected
- Fed’s Lockhart: ‘Pickup in disinflation’ could affect taper decision
- Agenda for Jackson Hole leaked
- Berlusconi’s daughter says she’s not planning to enter politics
- Fitch says Canadian housing could weaken in the medium-term
- S&P 500 gains 0.3% to 1694
- Gold down $15 to to $1323
- US 10-year yields near cycle high, touch 2.72%
- USD leads, JPY lags
The heart-pounding action today was in EUR/GBP as it broke 0.8580 and hit a wave of stops down to 0.8535 in moments. The break led to a broader run on the euro and a bounce for the pound. There was talk about a fat finger but it all stemmed from EUR/GBP.
EUR/USD continued lower after the initial break of 1.3280 and fell as low as 1.3234, bottoming around the time of the European equity close. It crept back to 1.3265 from there. Again, trading was decent for the summer doldrums.
Cable was whippy but ends virtually unchanged on the day at 1.5452.
AUD/USD hit some stops below 0.9080 as the dollar made broad gains but has climbed back to 0.9113.
USD/CAD is at an itneresting level. The range has been extremely tight today around 1.0345 but it hasn’t been able to break 1.0350/53. Look for a run-up (a small USD/CAD style run-up) if it breaks.
