Forex news headlines for US trading May 15, 2015:
- U Mich consumer sentiment May prelim 88.6 vs 95.9 expected
- May Empire Fed 3.09 vs 5.00 expected
- Canadian March manufacturing sales +2.9% vs +1.0% exp
- Canadian April existing home sales +2.3% vs +4.1% prior
- Russian Q1 GDP -1.9% y/y vs -2.6% expected
- April US industrial production -0.3% vs 0.0% expected
- Fitch affirms the Netherlands at AAA with stable outlook
- Baker Hughes rig count 888 vs 894 expected
- S&P affirms Italy with a stable outlook
- Goldman Sachs lowers Q1 US GDP forecast to -1.1%
- S&P 500 up 1.6 points to 2123
- Gold up $3.60 to $1225
- WTI crude flat at $59.86
- US 10-year yields down 8 bps to 2.15%
- German 10-year yields down 8 bps to 0.62%
- Euro leads, Australian dollar lags
Double tops were the story of the day. The euro repeatedly tested the 1.1450 zone where it topped out a day earlier. It was rejected a few times but eventually broke it. You would have thought there would be some stops above but a run to 1.1468 fizzed back down to 1.1449 at the close. Still it was impressive that the euro stayed so buoyant with yields falling.
It was a different story in cable , which made a true double top just above 1.5800. Even though the US dollar was weak after consumer sentiment, cable was even weaker as it slipped all the way back down to 1.5723. Here are three reasons cable shorts are beginning to look attractive.
USD/JPY tried to take 120.00 in European trade but consumer sentiment dropped it quickly down to 119.20 where it found some bids and bounced to 119.40 then chopped around in the 119.20-40 range.
USD/CAD was strong in Europe as oil prices slid. The pair hit 1.2065 but soft US data sent it back to 1.2000 where it found some bids and bounced to 1.2040 but oil prices rebounded late and it closed near 1.2000.
The Australian dollar was under heavy pressure in Europe and early Asia and briefly touched below 0.8000 before it was rescued by soft US numbers. It bounced to 0.8060 but slowly faded back to 0.8030.
Have a great weekend!
