Forexlive Americas FX news wrap: Dollar ends the day mixed. Rises ag. commodity currencies. Falls ag. the rest.

Forex news for trading on May 31, 2017

• US stocks end the day down, but could have been much worse...


• The best forex trade in May had an antipodean flavor


• Gold touches five-week high. Six reasons for the rally


• Crude oil futures settle at $48.32


• The Fed"s Beige Book: Most districts reported modest, moderate growth


• ECB"s Nowotny: It"s possible that inflation rates will remain low in long term


• Poll puts Theresa May ahead by six points as race narrows


• The SNB"s Jordan does his usual rant against franc strength


• Amongst all the volatility, this is probably the most-important chart


• Weidmann says ECB should start to discuss whether and when to adjust guidance


• More of the Fed"s Williams comments on price level targeting


• Russian deputy fin min says oil bulls will be disappointed for a long time


• Chicago PMI revised/corrected to 59.4 from 55.2 earlier today


• Cable ignores the polls and rips through the fix


• US April pending home sales -1.3% vs +0.5% m/m expected


• May Chicago PMI 55.2 vs 57.0 expected


• Theresa May: The only poll that matters is the June 8 election


• US will exit Paris climate change deal - reports


• ECB"s Lautenschlaeger: ECB should prepare to slowly reduce stimulus


• More from Kaplan: Inflation not running away from us


• Canada Q1 GDP q/q annualized +3.7% vs +4.2% expected


• Fed"s Kaplan: Inflation is slow and uneven but don"t think trend deteriorating


• The strongest and weakest currencies as NA traders enter for the day

A snapshot of other markets at the close:

• US stocks ended the day with modest declines. S&P down -0.05%. Nasdaq down -0.08%. Dow down -0.10%


• US yields are little changed from yesterday"s close. 2 year 1.2818%, unchanged. 5 year 1.7516%, unchanged. 10 year 2.204%, down -0.5 bps. 30 year 2.8664%, down 1 bp.


• Spot gold up $6 or +0.48% to $1269.25


• WTI Crude $48.74, down $-0.91 ore -1.83%

The US dollar was mixed in trading today with the greenback falling vs the EUR, CHF and GBP, and rising vs the AUD, NZD and CAD.  It was little changed vs. the JPY.   

Fundamentally, the greenback was influenced by some weaker US data. The Chicago PMI typically has a limited impact on the market.  Today was not one of those days (some technical breaks may have also contributed).  The regional manufacturing index came out weaker than expected at 55.2 vs 57.0 estimate. That was enough to push the greenback lower - mainly against the GBP, EUR and JPY (the commodity currencies were less impacted as oil, iron ore, CRB commodity index were going lower in trading today).  

A short time later, pending homes sales were also weaker (supply was the excuse once again) . That weakness - not matte the excuse - did not help the sentiment.  

Around the London 4 PM fixing time, there seemed to be another run to the downside in the greenback on the back of month end flows.  That pushed pairs like the EURUSD, GBPUSD and USDJPY toward their high extremes vs. the greenback.  

Ironically, the piece of data that started the dollars selling, stalled the fall a short time later when the Chicago PMI was revised corrected as European/London traders looked to exit.  Instead of being lower at 55.2, the actual number was higher at 59.4.  The rest of the day saw a minor retracement in the impacted currencies.  

In central back speak today: 

• Fed"s Kaplan said that inflation is slow but he does not think the trend is deteriorating


• ECB Lautenschlaeger says the ECB should start to reduce its bond buying QE and Weidmann said the ECB should start to adjust guidance. 


• SNBs Jordan lamented about the CHFs strength. The CHF was the strongest currency today, so his comments did not have a big impact (although the CHF was only up marginally against the EUR (up 0.17%))


• Finally the Feds Beige book said that growth was modest/moderate.

Technically for some of the major currency pairs:

(more to come)

• EURUSD: 


• USDJPY:


• GBPUSD:


• AUDUSD:


• USDCAD:

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Below is a snapshot of the % changes of the major pairs vs each other. The CHF and EUR are the strongest, while the AUD and CAD are the weakest. 

Forexlive Americas FX news wrap: Dollar ends the day mixed. Rises ag. commodity currencies. Falls ag. the rest.
Forexlive Americas FX news wrap: Dollar ends the day mixed. Rises ag. commodity currencies. Falls ag. the rest.
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