Forex news for North American trading at June 14, 2022
- The Nasdaq and S&P close at new record highs
- Economic calendar due from Asia today - RBA minutes (June monetary policy meeting)
- Pres Biden: Russia/China are trying to drive a wedge
- US crude oil futures settle at $70.88
- US 10 year yield inches back above the 1.500% level
- PM Johnson: We are concerned by Delta variant. Delays end of lockdown to July 19
- European indices close the day with gains
- J.P. Morgan's Dimon: Is prepare for higher rates, more inflation
- NY Fed survey for May: Inflation expectations 1year ahead at series high of 4%
- Bitcoin moves above $40,000 for the first time in two and half weeks
- Canada manufacturing sales -2.1% versus -1.1% estimate
- Paul Tudor Jones: Believes inflation is not transitory
- The NZD is the strongest and the CAD is the weakest as NA trader enter for the day
- ForexLive European FX news wrap: Slow and steady start
The FOMC will begin their two day meeting tomorrow and then release their statement on Wednesday at 2 PM ET. The Fed Chair Powell will hold a presser at 2:30 PM ET. The uncertainty as to whether the Fed will officially signal taper ideas, has the forex market to continue to trade with sporadically. Most of the pairs waffled in narrow-ish trading ranges. The GBPUSD which had the largest trading range of the major currencies verse the US dollar at 59 pips, traded lower, then recovered all the declines and is closing near unchanged on the day. That pretty much sums up the price action in the forex today.
Looking at the percentage changes verse the US dollar in the chart below, the greenback was higher versus the JPY and CHF, and lower verse the NZD, CAD, EUR and AUD. As mentioned the greenback was unchanged verse the GBP
For the USDJPY it trended to the upside with the help from higher rates and a rising stock market - at least in the Nasdaq and S&P indices. Both those broader indices closed at record levels. For the NASDAQ it was the first record close since April 26.
The Dow industrial average closed lower on the day by -85.85 points, but things could have been worse. The Dow 30 was down -269.06 points at the low before cutting losses into the close. In Europe today, the German Dax ended lower by -0.13%, but the other major indices closed higher (led by Spain's ibex at +0.83%).
In the US debt market, the tenure yield rose up 4.4 points and is trading at 1.496%, just below the 1.5% natural resistance level. The high yield of reached 1.502% but could not extend the yield higher. The low yield reach 1.454%. On Friday, the yield made a cycle low (from the March 30 high) at 1.428%. The high yield for the year was at 1.774% back on that date. The 30 year yield also rose by 4.4 basis points. The two year yield was up why 1.2 basis point increasing the 2– 10 year spread to 133.66 from 130.49 at the close on Friday.
In other markets:
- The price of bitcoin moved back above the $40,000 level to a high of $41,076, but backed off into the close and is currently trading at $39,796.94. The gains were help by comments over the weekend that Elon Musk and Tesla would buy bitcoin if there's confirmation of reasonable clean energy usage by minors with positive future trends. As it is Tesla only sold approximately 10% of its holdings since Musk said that he would not accept bitcoin for payment.
- Spot gold is trading down $11.11 or -0.59% at $1866.45.In an interesting interview on CNBC at the start of the New York session, legendary investor Paul Tudor Jones said that should the Fed continue its stance of ignoring inflation, he would look to buy 5% crypto, 5% gold, 5% commodities and have 5% in cash. What you do the rest was still undecided. Although gold was much lower at $1844.92, it still is back under the $1900 level that was breached last week.
- Spot silver is trading down five cents or -0.21% $27.85
- WTI crude oil futures are closing up $0.32 or 0.45% at $71.23.