ForexLive Americas FX news wrap: Carney to 2019, oil to $46

Forex news for New York trading on Oct 31, 2016

• Mark Carney to stay at Bank of England until June 2019


• OPEC output hit fresh record in October


• The Atlanta Fed GDPNow first estimate for Q4 in at 2.7%


• October 2016 US Dallas Fed manufacturing index -1.5 vs 2.0 exp


• Genscape Cushing oil inventories +585.2k week ending 28 October


• October 2016 US Chicago PMI 50.6 vs 54.0 exp


• September 2016 US Core PCE 1.7% vs 1.7% prior y/y


• Canada Sept industrial product price +0.4% vs +0.4% expected


• September 2016 US personal spending 0.5% vs 0.4% exp m/m

Markets:

• WTI crude down $2.03 to $46.67


• Gold up $3 to $1278


• US 10-year yields down 2 bps to 1.83%


• S&P 500 float at 2126


• GBP leads, NZD lags

Month end is never a time to tie fundamental news to market moves but it certainly looked like the market appreciated Mark Carney"s decision to stick around the Bank of England through the Article 50 turmoil. My take is that month-end demand was the main driver of the 60 pip rally in cable today but the Carney headlines were at least some small part of the climb to 1.2242 from 1.2150 in early New York trade.

The euro had a split session. It trickled lower in the early going in a continuation of a selloff in Europe. The slow slide took it as low as 1.0936 but demand into the London close drove it back up to 1.0960 and then it added another 20 pips in the US afternoon.

The PCE report wasn"t much of a market mover and that"s not a big surprise given that the FOMC is due tomorrow and the multitude of other risks. USD/JPY hardly moved on the report or on the Chicago PMI. It eventually crawled to 105.22 from 105.00 but it sagged after London left and finished at 104.80.

The commodity currencies finished within 20 pips of the day"s opening levels but oil was a big mover. The market is souring on all the OPEC talk and some month end flows may have weighed. Technically, the break below the August high led to so quick selling. From an opening level near $49 it was largely flat trading in Asia and early Europe but heavy selling kicked off a couple hours after New York arrived and we finish at the lows at $46.72.

ForexLive Americas FX news wrap: Carney to 2019, oil to
ForexLive Americas FX news wrap: Carney to 2019, oil to
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