Forex news for US trading on September 16, 2015:
- US August CPI -0.1% m/m vs -0.1% m/m expected
- BOE's Carney: wage growth just starting to pick up
- McCafferty: BOE intends to raise rates before selling QE gilts
- BOE's Forbes: My reading on the labor market suggests there is very little slack, if any
- BOE's Weale: Productivity is key to his rate hike view
- Schaeuble says Germany would be worse off without the euro
- US EIA crude oil inventories -2104K vs +2000K expected
- NAHB housing market index 62 vs 61 expected
- BOC's Cote: Current CAD level consistent with historical relationship with oil
- July 2015 Canadian manufacturing sales 1.7% vs 1.0% exp m/m
- Latest Reuters poll says 45 of 80 economists expect the Fed to hold rates tomorrow
- Gold up $14 to $1119
- WTI crude up $2.50 to $47.09
- S&P 500 up 19 points to 1996
- GBP leads, JPY lags
There was no fear from risks trades ahead of the Fed. The S&P 500 rallied to the best levels since the mini-panic in August while the US dollar sold off after a mildly disappointing CPI report.
The euro started US trading in deep negative territory near the lows of the day but after CPI it caught a relentless bid up to 1.1320 before some late selling down to 1.1285. There are lots of flows and whatnot sloshing around as traders square up ahead of the Fed.
The pound caught an independent bid after higher wage data in European trading and it continued to extend and take advantage of US dollar weakness. At the highs it was up more than 180 pips but gave back about 30 late.
USD/CAD fell below 1.3200 and some stops were run on a big gain in oil prices as API oil data was confirmed by US surprise draw.
The Aussie continues to trod higher as it wiped out a dip in European trading to finish near the high.
USD/JPY didn't do much in USD trading as it chopped around 120.60. A marginal fresh high didn't attract any kind of momentum or hit stops in a sign that the market is relatively balanced heading into the Fed.
