Forex news for US trading on March 30, 2016:
- March 2016 US ADP employment 200k vs 194k exp
- US weekly EIA oil inventories +2299K vs +3100K expected
- BOC's Patterson: Weaker dollar boosting export competitiveness
- Fed's Evans doesn't fear pushing inflation to 2.5% for brief period
- Oil bribery scandal threatens many of world's largest companies
- ECB keeps AAA rating from S&P
- OPEC output rises in March - RTRS survey
- Bill Gross: Central bankers are running out of time
- Fed's Evans: Yellen laid out all the right issues yesterday
- WTI crude flat at $38.27
- US 10-year yields up 2 bps to 1.83%
- S&P 500 up 9 points to 2063
- NZD leads, GBP lags
The post-Yellen US dollar slump continued in early trading with a fresh high to 1.1368 but it backed off into the London close and flatlined from there.
It was a similar pattern in cable is it touched just above 1.4450 and then fell back to 1.4381, finishing flat on the day.
USD/JPY bottomed at 122.00 in Aearly European trading and trended up to 112.50 from there as risk sentiment improved.
The spot where the US dollar continued to struggle was against the commodity bloc. USD/CAD fell hard for the second day. The early driver was oil and that knocked the pair down to 1.2912 but even as oil reversed down to flat on the day, the pair maintained the large majority of its gains.
AUD/USD rose briefly above 0.7700 but then slipped back to 0.7672, still finishing much higher on the day.
The best performer was the kiwi for the second day as it broke out to the highest since June.
The big turnaround in oil came after the EIA weekly storage data. It showed a smaller than expected build in supplies and that sent WTI to a session high near $40 but shortly afterwards profit taking it and it sagged back to $38.33.