Forex news for New York trade on July 30, 2019:
- US June PCE core +1.6% vs +1.7% y/y expected
- Germany July preliminary CPI +0.5% vs +0.3% m/m expected
- US July consumer confidence 135.7 vs 125.0 expected
- Boris Johnson says to EU 'the ball is in your court'
- US June pending home sales +2.8% vs +0.5% m/m expected
- Fmr NY Fed President: There’s a good chance the Fed will be 'one and done'
- US May Case-Shiller 20-city house price index +2.39% vs +2.4% y/y expected
Markets:
- S&P 500 down 7 points to 3013
- WTI crude up $1.46 to $58.33
- US 10-year yields down 1 bps to 2.06%
- Gold up $4 to $1431
- JPY leads, GBP lags
The lead-up to the FOMC always calms markets and that's especially true when there is some uncertainty around the outcome. For the second day ranges were narrow aside from cable. However the range in GBP was set before NY arrived and it was a chop up to 1.2180 and then down to 1.2135 before settling in the middle. I doubt we will have to wait long for Brexit headlines but they're overshadowed by the Fed at the moment.
The euro held a modest bid on better German inflation data. It rose to 1.1160 from 1.1135 at the European lows but it was a small move overall.
USD/CAD was a bit more lively, especially late in the day as it sank to 1.3145 from 1.3190 on strengthening oil prices. That's the lowest level of the week and comes ahead of tomorrow's CAD GDP report.
The Australian dollar wasn't nearly as buoyant as it declined for the 8th straight day, falling 30 pips on the day to close slightly above the 0.6869 low.
USD/JPY didn't take much of an impetus from the strong US consumer confidence data or the news on US-Japanese trade. It ranged around 108.60 with the BOJ failing to inspire much movement as Kuroda tiptoed towards more easing.
