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ForexLive Americas FX news wrap: Cable finishes up 200 pips

Forex news for US trading on July 14, 2016:

Markets:

  • Gold down $9 to $1333
  • S&P 500 up 11 points to fresh record 2163
  • US 10-year yields up 6.3 bps to 1.54%
  • WTI crude up 75-cents to $45.50
  • GBP leads, NZD lags

The big news on the day came before US trading ramped up. The BOE didn't cut rates as expected and that led to a big rally in GBP. The cable highs came immediately after the announcement and at 1.3475. We finish 130 pips lower and it fell as much as 160 pips. The lack of follow through initially suggests plenty of appetite waiting in the wings to sell. But that could also being a fuction of the BOE pre-committing to easing in August.

EUR/USD rallied in sympathy with cable. It climbed 50 pips, held near the highs for an hour and then sagged back down. From there it was a chop in the 1.1100 to 1.1125 range.

USD/JPY was under some minor pressure early in US trading and slipped to 105.30 from 105.75. Bids ahead of the European low of 105.22 have held to create a minor intraday bottom.

USD/CAD fell for the second day following the BOC decision. The decline accelerated around midday in a slide down to 1.2862 from 1.2950. Late in the day it bounced to 1.2890.

AUD/USD was in consolidation mode after rallying in Asia on the Aussie jobs report (on the full time jobs jump). It was a chop in the 0.7620 to 0.7650 range, which is a win for the bulls.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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