Forex news for North American trading on November 15, 2021
- NASDAQ and Dow close lower. S&P trades near unchanged
- Fed's Barkin says the infrastructure bill is not a near-term stimulant
- Retail sales highlights the events tomorrow
- WTI crude oil futures settle at $80.88
- Congressional Budget Office to release cost estimate for Build Back Better
- Gasparino: 50-50 Powell is renominated
- European major indices close higher
- ECBs DeGindos: Rising energy costs are weighing on growth
- US dollar index (DXY) moves to session high. Eyes Friday's high.
- ECBs De Cos: Midterm inflation is still below our 2023 target
- US major indices open higher. S&P and NASDAQ looks to extend 2 day win streak
- Bank of England's Bailey: Very uneasy about inflation situation
- Canada home sales rose 8.6% in October from September
- Bank of Canada's Macklem: Economic slack is is still not absorbed
- Canada September wholesale trade +1.0% versus 1.1% estimate
- Canada September manufacturing sales -3.0% versus -3.0% estimate
- US November Empire manufacturing index 30.9 versus 22.0 estimate
- The AUD is the strongest and the JPY is the weakest as NA trader enter for the day
- ForexLive European FX news wrap: Dollar gains ease, yields retreat awaiting more inflation clues
The economic calendar was modest with the November Empire manufacturing index the only US release. That index came in at 30.9 versus 22.0 estimate. New orders and shipments rose substantially, but prices received in paper also elevated. The 6 month forward index also fell versus last month but still remain solidly positive. For the full report click here.
Canada manufacturing sales and wholesale trade sales came in near expectations.
BOEs Bailey, Saunders and Pill all testified in front of a parliamentary committee. Bailey said he was very uneasy about the inflation outlook and that his vote to keep interest rates on hold earlier this month had been a very close call. Recall, the interest rate decision surprise the market and that the vote remained that 7-2 and Bailey had hinted of a potential tightening. The GBPUSD stayed steady within a 25 pip trading range through the testimony. Technically, the price held mostly below its falling 100 hour moving average which currently comes in at 1.3433. Toward the end the day dollar buying push the pair down to 1.3413 area and nearer the lows for the day.
The US stocks opened higher but quickly gave up gains. All three major indices ended up closing marginally lower. The NASDAQ and Dow fell -0.04%. The S&P index was virtually unchanged but fractionally lower. The declines snapped the NASDAQ and S&P two day winning streak. The Dow industrial average has been down for the last five trading days.
In the US debt market, yields were mixed/near unchanged as US traders enter for the day, but soul the yield curve steepen in the morning trade. The 30 year is ending up around 4.2 basis points while the two year fell modestly (-0.2 basis points)
Overall the forex market, the AUD and CAD are ending as the strongest of the major currencies. The EUR and CHF are the weakest. Th ending mostly higher with mostly gains coming verse the EUR (+0.72%). The greenback decline verse the CAD (-0.28%) and AUD (-0.19%), was unchanged vs the GBP and NZD, and rose vs the EUR (+0.72%), CHF (+0.43%) and JPY (+0.25%) .
The EURUSD came into the US session having traded only in a 27 pip trading range. However, Sellers came in, push below the low from Friday at 1.1432, and trended down to a session low of 1.1354. Overall the low to high trading range extended to 107 pips by the end of the day and in the process reached a new 2021 low for the year.
The EURGBP (-0.69%), EURCAD (-1.02%), EURAUD (-0.81%) and EURJPY (-0.49%) all trended lower as well and are closing near the lows for the day.
There was not anything fundamental that pushed the price lower. It was just one of those quiet days that gathered steam as time went on, and kept going.
