Forex news for US trading on July 20, 2016
- Weekly US oil inventory data -2342K vs -2000K expected
- Japanese government considering 20 trillion yen stimulus package
- Obama adviser: China needs to deal with debt issue
- Merkel/May press conference highlights
- USDTRY moves to a new post coup high (and record highs)
- Spain and Portugal creep closer to deficit sanctions
- Eurozone consumer confidence -7.9 vs -8.0 expected
- HSBC head of currency trading arrested for FX rigging
Markets:
- Gold down $19 to $1312
- WTI crude oil up 30-cents at contract expiration
- S&P 500 up 10 points to record 2174
- US 10-year yields up 3 bps to 1.58%
- GBP leads, JPY lags
A light calendar didn't halt lively trading. USD/JPY broke above the pre-Brexit high of 106.81 and the 61.8% retracement of the decline since May on talk of a 20 trillion stimulus budget from Japan. That's about double what's been floated before. Rising yields and stocks also helped.
After getting beaten up yesterday, cable staged a bounce and finished strong above 1.32 on hawkish comments from Forbes.
The euro was in a chop around 1.1015 and that's where it finished. It was likely constrained by the impending ECB decision.
Commodity currencies were beaten up early and USD/CAD rose to a one-week high at 1.3095 as oil fell to a two month low. But inventories that were slightly tighter than expected led to a turnaround in crude and the Canadian dollar, which finished at 1.3060.
AUD and NZD were hit in Asia but struggled to recover in US trading.
