Forex today was again dominated by the Comey vs Trump political dramas and scandals, this time from Brazil.
The US session started off with a rebound in the euro taking the dollar back to the 1.11 handle with the DXY dropping to 97.37 vs the previous close of 97.57. However, that was a shortlived story and was faded at the highs of 1.1137 when better than expected data from the US arrived and a video doing the rounds that the market thought could potentially get Trump off the hook. For details of that event, see below in Key events in the US session, but Sterling got the brunt of a thin NY session.
The euro is ending the day back testing the downside of the 1.11 handle. Sterling was a flash crash move to 1.2885 after an impressive attack through the 1.30 barrier o/n no better than expected retails sales. The post data high was at 1.3049. USD/JPY was demanded back to 111.73 highs and through the 111.50 key resistance on the flash Comey video story. However, the trade was faded back to 111.34 ending the day +50% in the green. Gold is down 1.00% and 10-year yields are flat on the day after a range of 2.1791-2.2486%.
The Candian dollar was choppy between 1.3582-1.3669 and flat on the day while the kiwi dropped -0.61% and the Aussie was down just -0.15%; more robust that its NZ counterpart following the release of strong employment figures o/n.
The day ahead:
No scheduled events
Key events from the US session:
- Gold intermarket: committed bulls not done yet, awaiting a resurgence in Yen
- Brazilian President Michel Temer to resign - O Globo
- USD/JPY: fragile at 111.50 key resistance level as market fades the Comey video news
- GBP/USD flash crash, Trump off the hook on Comey video to blame?
- US Dollar jumps suddenly following Comey's video suggesting that investigation obstructions "never happened"
- Fed's Mester: Delaying rate hikes for too long risks recession
- Times Square incident isn't connected to terrorism - CBS
- US April Leading Index: Uptrend continues - Wells Fargo
US stocksstabilize after previous session's hefty losses
- USD/BRL jumped more than 7% on bribery scandal
- Philly Fed: Manufacturing activity continued to expand in May
- US: Weekly initial claims was 232,000, a decrease of 4,000 from the previous week