- The Dollar was mixed overnight, with the Yen the worst and the Kiwi the best performer.
- NZD/USD climbed from 0.6660 to 0.6693, a two-month high.
- USD/JPY climbed 0.5% to 107.80 on the back of higher US yields.
FX and markets, in general, were somewhat subdued with light data making for a mixed greenback. However, US yields continued to recover following the prior day's Fed less dovish speak. The Federal Reserve speakers continued to talk easier money conditions on Wednesday, with San Francisco Fed president Daly commenting on how uncomfortable she was with the low levels of inflation, concerned over wages growth. As for US yields, the 2-year treasury yield climbed from 1.72% to 1.77% with the 10-year yield rose from 2.00% to 2.05%.
On the data front, analysts at ANZ explained that the May US durable goods headline of -1.3% was weak and argued that the data provided some push back against a 50bp rate cut by the Fed, and market pricing adjusted accordingly.
As for trade talk, the US Treasury Secretary Mnuchin said the US and China “were about 90% of the way” to a deal. "Note that he was speaking in the past tense and clearly the final 10% was too difficult last month," analysts at Westpac argued.
Meanwhile, US President Trump crossed the wires and said that the US Fed would be better off with the ECB’s Mario Draghi at the helm. Trump was comparing the Fed to a “stubborn child” and argues that they “blew it” this month when they didn’t cut. "It should be noted that Mr Draghi was less popular with Trump earlier this month when he signalled easier monetary conditions are likely on the way for Europe, with implications for EUR/USD," analysts at ANZ Bank said.
As for the price action, it left the Euro flat around 1.1370. Cable was net unchanged near 1.2700 by the close of the New York session and the yen was the weakest. USD/JPY climbed 0.5% to 107.80 on the back of higher US yields. AUD/USD manged to advance on mixed feelings over the forthcoming Xi/Trump summit, extending a six-day rally from 0.6970 to 0.6990/95. The top performer was the Kiwi. NZD/USD climbed from 0.6660 to 0.6693, a two-month high, following the RBNZ that came as less dovish than expected.
Key notes from Wall Street
Wall Street benchmarks consolidate lower and the DJIA clings to the 4-HR pivot
Key events ahead
China May industrial profits (expected April -3.7% for the year, no forecasts).
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD fluctuates near 1.0700 after US data
EUR/USD stays in a consolidation phase at around 1.0700 in the American session on Wednesday. The data from the US showed a strong increase in Durable Goods Orders, supporting the USD and making it difficult for the pair to gain traction.
USD/JPY refreshes 34-year high, attacks 155.00 as intervention risks loom
USD/JPY is renewing a multi-decade high, closing in on 155.00. Traders turn cautious on heightened risks of Japan's FX intervention. Broad US Dollar rebound aids the upside in the major. US Durable Goods data are next on tap.
Gold stays in consolidation above $2,300
Gold finds it difficult to stage a rebound midweek following Monday's sharp decline but manages to hold above $2,300. The benchmark 10-year US Treasury bond yield stays in the green above 4.6% after US data, not allowing the pair to turn north.
Worldcoin looks set for comeback despite Nvidia’s 22% crash Premium
Worldcoin price is in a better position than last week's and shows signs of a potential comeback. This development occurs amid the sharp decline in the valuation of the popular GPU manufacturer Nvidia.
Three fundamentals for the week: US GDP, BoJ and the Fed's favorite inflation gauge stand out Premium
While it is hard to predict when geopolitical news erupts, the level of tension is lower – allowing for key data to have its say. This week's US figures are set to shape the Federal Reserve's decision next week – and the Bank of Japan may struggle to halt the Yen's deterioration.