Forex news for US trading on Sept 26 ,2016
- Fed's Lacker "I think the case is going to be strong" for a December hike
- Fed's Kaplan: I would have been comfortable with Sept hike
- US sells 2-year notes at 0.750% vs 0.755% WI bid
- Fed's Tarullo wants to up the ante in stress tests
- Draghi: ECB officials never discuss exit strategies
- Draghi: Real economy resilient so far after Brexit vote
- Sept Dallas Fed manufacturing -3.7 vs -3.0 expected
- August 2016 US new home sales 0.609m vs 0.600m exp
- ECB QE count: Bought €15.41bn vs €15.96bn prior
- What Iran proposed for capping oil production
- ECB's Coeure: EU is going through a difficult phase
Markets:
- Gold flat at $1337
- S&P 500 down 18 points to 2146
- US 10-year yields down 3.6 bps to 1.58%
- WTI crude oil up $1.18 to $45.67
- JPY leads, CAD lags
The Presidential debate will likely be the most-watched ever as Trump and Clinton square off face to face. The dollar was on the soft side in the lead-up to the event.
EUR/USD chopped up to 1.1260 from 1.1220 at the start of European trading. It corrected back down to 1.1245 and then climbed to 1.1279 ahead of the London close. That was the best level of the day as it hit touted heavy offers ahead of 1.1300 and slipped back to 1.1258.
Cable weakness was the story late last week but a retest of the Friday low held at 1.2917 and then it slowly grinded up to 1.2970 but wasn't able to rise above the European high.
USD/JPY is back within striking distance of 100.00 in what will probably be the most-intriguing trade of the day ahead. Treasury yields continue to sink to three-week lows. The low of 100.25 came late in the day as the stock market slipped and on a strong auction. At the start of European trading, the pair was over 101.00.
AUD/USD also tried Friday's low and held. After touching 0.7603, it crept up to 0.7649 but small offers at 0.7650 have held so far.
It was a completely different story in USD/CAD. The pair should have been weighed down by the 3% rally in oil prices but that was totally brushed aside ahead of a speech by Poloz later. The weak retail sales and inflation reports from Friday continue to reverberate.
