Forex headlines for February 20, 2014:
- February US Philly Fed survey business index -6.3 vs +8.0 exp
- US February Markit PMI 56.70 vs 53.00 expected
- US initial jobless claims 336k vs 335k exp
- US Jan CPI 1.6% vs 1.6% y/y expected
- BOE’s Weale can’t rule out earlier rate increase
- February EZ consumer confidence slumps to -12.7 from -11.0 exp
- Wal-Mart cuts forecasts, cites weak economy
- Ukraine’s Yanukovych has agreed to elections this year – AFP
- Brazil slashes 2014 growth forecasts
- WTI crude down 39-cents to $102.92
- Gold up $12 to 1323
- S&P 500 up 12 points to 1841
- NZD leads, CAD lags
The market had its choice of good data, bad data and data that was right on expectations. In the end, the good news from the Markit PMI was the driver as stocks rallied once again, wiping out the losses from the day before. USD/JPY joined it, rising to 102.40 from as low as 101.67 in Asia. Worries about China were completely forgotten.
Cable jumped to 1.6700 on the comment from Weale but not a pip higher with offers restraining the pair. The lack of follow through was the key for sellers who beat the pair down to 1.6626 at the lows. Last at 1.6653.
The euro chipped between 1.3686 and 1.3729 and ends the day near the highs.
USD/CAD broke through 1.1100 as the pair continued higher following the reversal on Wednesday.
AUD/USD slumped in Asia on the China PMI but the Aussie has reconnected with the risk trade and it climbed above 0.9000 from as low as 0.8937.