Forex news for North American trading on April 26, 2019:
- US Q1 advance GDP +3.2% vs +2.3% expected
- U Mich April final consumer sentiment 97.2 vs 97.0 expected
- Trump says he called OPEC and told them to bring prices down
- Kudlow: Slower US inflation could open the door for a Fed cut
- Trump: Trade talks with China are going very well
- CFTC commitment of traders: EUR shorts are the largest since December 2016
- White House adviser Hassett: There is "ample progress" on US-China trade
- Baker Hughes oil rig count 805 versus 823 estimate
- New York Fed Q2 GDP Nowcast climbs to 2.08% from 1.92%
Markets:
- Gold up $8.50 to $1285
- S&P 500 up 13.6 points to 2939
- US 10-year yields down 3 bps to 2.50%
- WTI crude oil down $2.35 to $62.86
- NZD leads, USD lags
The GDP report provided plenty of drama. It easily beat expectations and the first move in the US dollar was sharply higher. That didn't last long because the beat was all about trade and inventories, two factors that won't carry forward. The low inflation print in the report also adds pressure on the FOMC to cut.
USD/JPY initially jumped to 112.00 from 111.75 then sank as low as 111.43 afterwards in a tricky whipsaw. It climbed a bit higher late on better stock sentiment to finish near 111.63. Japan is set for a long holiday.
The euro fell near 1.1100 before rebounding as high as 1.1174 to cap off a poor week with a small gain on the day. Last at 1.1149. Rest assured, the economic worries in the eurozone won't go away quickly.
Cable retested Thursday's lows on the GDP report and held them before bouncing to 1.2940. It was really about the dollar side as a fall in Treasury yields made it less attractive.
The Canadian dollar had an impressive day as USD/CAD fell 30 pips to 1.3457 despite a 3.6% decline in oil prices. It's the second day in a row the loonie defied crude.
The other commodity currencies also gained in a minor relief rally after a rough week. AUD/USD finished up 30 pips to 0.7045 as RBA talk dominates.
