Forex news for North American trading on April 25, 2019:
- US March prelim durable goods orders +2.7% vs +0.8% expected
- Joe Biden announces that he will seek Democratic presidential nomination in 2020
- US sells 7-year notes at 2.426% vs 2.421% WI
- Canada sells 30-year bonds at 2.002%
- The Atlanta Fed GDPNow final answer for 1Q growth...2.7%
- KC Fed manufacturing index +5 vs +10 prior
- UK foreign minister Hunt says it would be a big mistake to have election before Brexit
- ECB's De Guindos: 'Cannot be super optimistic' on European economy
- US initial jobless claims 230K vs 200K estimate
Markets:
- Gold up $1.32 to $1277
- WTI crude down 79-cents to $65.10
- US 10-year yield up 1.4 bps to 2.53%
- S&P 500 down 1 point to 2926
- NZD leads, EUR lags
The US dollar climbed higher once again, particularly against the euro and pound. EUR/USD hit a fresh low since June 2017 at 1.1118 as the breakdown continues. Cable hit a two-month low of 1.2866. Both later rebounded by about 30 pips and GBP/USD finished almost flat.
USD/JPY also came under pressure after the durable goods orders report as it skidded down to 111.38 from 111.85. Yesterday it hit a four-month low but with the fall today it hit a two-week low in a whipsaw for the pair. The pair bounced to 111.62 late to finish down 56 pips.
The commodity currencies held up better in the face of USD strength. CAD was flat on the day despite the 1.2% dip in oil. There was little Canadian domestic news but the market continues to digest yesterday's BOC decision and statement.
The Australian dollar fell for the fifth day and broke down to 0.6988, which was the lowest since the flash crash at the start of the year. However there wasn't much follow through and it rebounded to 0.7016 in a sign that the heavy selling may have run out of gas.
The kiwi was particularly well-bid late in the day as it climbed to 0.6624 after hitting 0.6587 early in New York trade.
