Forex headlines for August 30, 2013:
- Oil falls after Sec of State Kerry indicates US action in Syria will be minimal
- Canadian Q2 GDP 1.7% vs 1.6% expected
- US July PCE report shows weak consumer
- August Chicago PMI 53.0 vs 53.0 expected
- Final August University of Michigan consmer sentiment 82.1 vs 80.5 expected
- US says Syrian govt planned and ordered chemical attack
- Goldman Sachs lowers Q3 GDP estimate
- CFTC Commitments of Traders: Big bets on gold and big bets against CAD
- S&P 500 down 0.3% to 1632
- S&P 500 monthly decline is worst since May 2012
- JPY leads, NZD lags
The focus was on the euro as it fell for the third day. Bids and technical support were at the August low of 1.3190 as that gave way, stops ran to 1.3174. The selling pressure came ahead of the European close and disappeared afterwards, allowing the euro to drift back to 1.3222.
USD/JPY was a quiet trade. The US numbers failed to spark any type of direction and the pair traded from 98.03 to 98.33.
Cable was more exciting as it trended lower in the early part of trading and into the European close. The low was 1.5463 but it recovered to 1.5490 late in the day.
The commodity block was on the defensive throughout the day. USD/CAD fell after the Canadian GDP numbers but weakness in US stocks led to a second push above 1.0550. Right at midday, a huge offer hit the market and knocked the pair down 50 pips. The move remains a mystery but after the decline the pair crept back to 1.0537.
Have a great weekend!