Forex headlines for US trading on Sept 18, 2015:

  • August 2015 Canadian CPI 1.3% vs 1.3% exp y/y
  • UK could call EU referendum as soon as March - report
  • BOE's Haldane: Case for raising rates isn't a pressing one
  • BOE has to take effect of strong pound very seriously says Haldane
  • August US leading index +0.1% vs +0.2% expected
  • Europe is in danger of destroying itself says Germany's Gabriel
  • Mr Yen calls the US dollar top
  • S&P upgrades Portugal to BB+
  • US Baker Hughes oil rig count 644 vs 652 prior
  • Gold up $7 to $1138
  • S&P 500 down 32 points to 1958
  • WTI crude down $2.01 to $44.89
  • US 10-year yields down 7 bps to 2.13%
  • NZD leads, EUR lags on the day
  • AUD leads, EUR lags on the week

If you're looking for a headline to explain what happened in markets today then look elsewhere because there's no clear explanation. The one we've heard is that Fed worries on global growth created some risk aversion and that the US dollar is strong despite everything yesterday. That's a tough one to swallow.

A better one might be that it was quadruple witching today (options expirations) and that created some volatile flows but, even then, it's a stretch to explain moves.

In that sense, it was a good day for technical analysts because some markets bounced off key levels and there were plenty of buy/sell signals throughout the day.

EUR/USD hit a session high shortly after the start of US trading at 1.1462 but that was the last gasp for the euro a slide turned into a fall. The break of the European low of 1.1380 led to a quick move to 1.1350 but there were some bids there and it was a sideways move for a period until late in the day when it cracked in a quick move all the way to 1.1280.

USD/JPY tried 119.00 at the start of US trading but couldn't break it. From there it was higher and higher despite a rout in stocks. The pair took out 120.00 but didn't have any follow through and closed at 119.97.

GBP/USD put in a double-top at 1.5660 early in the day but crashed down to the 100-day moving average and below. last at 1.5536.

USD/CAD made a major turnaround. Take a look at the chart if you get the chance. The catalyst was oil as it fell almost 5%. Bids at 1.3000 held and the pair absolutely roared to 1.3226.

AUDUSD narrowly rose above yesterday's high of 0.7270 but that proved to be a nasty fakeout as it slowly (and then quickly) fell in US trading down to 0.7189.

On the weekend, it's the Greek election. Read Ryan's Greek election preview: This time things will be different