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ForexLive Americas FX news wrap: Cable goes up, cable goes down

Forex news for US trading on May 12, 2016

Markets:

  • Gold down $10 to $1267
  • WTI crude up 26-cents to $46.49
  • US 10-year yields up 1 bps to 1.75%
  • S&P 500 flat at 2064
  • CHF leads, AUD lags

Cable took off after the BOE minutes and inflation report in a move that was choppy at first and then led to a rip up to 1.4525 from 1.4450 with the final half-cent coming in only a few minutes. None of the gains lasted and from 1.4530 the fell right back down to 1.4445 to finish the day unchanged.

EUR/USD looked like it might get back on the horse yesterday as it climbed above 1.14 but it began to sag midway through European trading and down to 1.1375 before a bounce to 1.1415 and then back down, finishing near the lows of the day at 1.1371.

USD/JPY peaked at the start of the US trading day at 109.40. It sagged down to 108.65 at the end of European trading. Risk appetite improved afterwards and so did the pair, although the correlation is tenuous lately. It finished the day at 109.00. The big level remains 109.49, which is the 61.8% retracement of the BOJ drop.

USD/CAD fell for the second day as oil companies in Alberta began to restart production. Oil gains knocked the pair down to 1.2775 from 1.2850 but USD/CAD bounced right back. Tomorrow is a big day for the pair. The low today was a six-day low but it was firmly rejected. Retail sales is due at the start of US trading and could shake things up.

AUD/USD struggled and remains stuck near the recent lows at 0.7320. Talk about rate cuts continues to circulate.

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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