Forex headlines for September 23, 2013:
- Fed’s Lockhart: US economy is losing it’s mojo
- Lockhart sees a tough case for October taper
- Draghi: ECB interest rates to remain at current lower lower levels for an extended period of time
- Draghi: ECB monetary policy will remain accommodative
- Draghi: ECB ready to use another LTRO if needed
- Fed’s Dudley: Economy still needs very accommodative policy
- Fisher says decision not to taper undermined Fed credibility
- BOE’s Broadbent: Third quarter strong so far, can’t be sure it will continue
- SNB’s Jordan says franc still highly valued
- August US Chicago Fed activity index +0.14 vs -0.15 prior
- September US Markit manufacturing PMI 52.8 vs 54.0 exp
- ECB’s Knot says Europe improving
- IATA cuts 2013 global airline profit forecasts by $1bn
- No Fed nomination this week – RTRS
- Blackberry enters tentative agreement to go private
- Oil falls to 6-week low
- S&P 500 down 0.5% to 1702
- JPY leads, EUR lags
The technical move of the day was in EUR/CHF as it broke below the 200dma for the first time since November 2012. It’s a line that has been repeatedly challenged. Watch the close but at 1.2291 it looks like a close below the line (at 1.2300) is a done deal.
EUR/USD started near 1.3513 and skidded lower when the Draghi comments hit, touching 1.3479. The pair quickly rebounded as Lockhart hit with his own dovish comments. Lockhart is close to the center of the Fed and if he doubts an October taper, it probably won’t happen.
USD/JPY was on the defensive in the early going. It fell below 99.00 in Europe and was unable to get back above. Softer stocks and stops below 98.75 sent it as low as 98.65.