Forex trading news for April 20, 2015, US edition:
- RBA's Stevens says board has clearly signalled rates could be cut again
- Greece: All local government funds to be parked at the central bank - BBG
- BOC's Poloz: It looks like the we took out the appropriate insurance amount
- ECB's Constancio says QE to last until inflation adjustment
- ECB's Constancio talks capital controls in Greece
- Fed's Dudley says lift off timing uncertain because outlook is uncertain
- Drop in oil price has boosted real incomes says Dudley
- Fed's Rosengren: We need 2.5-3.0% growth to meet liftoff conditions
- ECB's Draghi says weak recovery will turn into more robust upturn
- Chinese property developer Kaisa defaults on USD debt
- Latest UK election poll gives the Conservatives a 4 point lead
- March 2015 US Chicago Fed national activity index -0.42 vs +0.10 exp
- Venezuela not curbing oil production despite price slide
- Iran in compliance with nuclear deal - IAEA report
- Gold down $9 to $1195
- WTI crude up 50-cents to $56.25
- S&P 500 up 19 points to 2100
- US dollar leads, AUD lags
The US dollar was in rally-mode Monday after taking a beating last week. The trend started in Europe but continued into North American trading.
EUR/USD bottomed at 1.0712 just as US traders were ramping up. Greece will be a focus this week and news that regional governments are being asked to send liquidity to Athens highlights how close it is to disaster. Still, the euro managed a bounce to 1.0765 where it made a minor double top and the slid back to 1.0725.
USD/JPY posted a more-steady rise for most of the day as it reversed an early decline down to 118.53 in Asia and began a steady climb in Europe that continued to 119.44. Better risk appetite was part of the equation but the pair dipped back to 119.20 late.
Cable went sideways in US trading after an earlier fall to 1.4888. Like the euro, the low came early in the day but the bounce was also less pronounced. Last at 1.4907.
Poloz and oil combined to send USD/CAD down to 1.2180 but that level held, just like it did early in Europe and that provided a base for a bounce back to 1.2235. It's tough to imagine the BOC getting any more upbeat so the loonie will need support from oil or data (but the calendar is quiet this week).
Stevens was the headliner in US trading as he said a rate cut is still on the table. That sparked a quick drop to 0.7720 from 0.7765. Stops were run as 0.7760 was also Friday's low. A second wave of selling came when Stevens predicted a lower AUD but it didn't get far at 0.7707. Last at 0.7725.