Forex - US North American Summary and Highlights 17 Jul


 20:05 (GMT) 17 Jul

  [Forex Highlights]

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Overview

US North American Summary and Highlights 17 Jul (0100-QSLX-C04)

In a subdued FX session a bounce in EUR/JPY was probably the highlight. Treasuries saw a flattening and equities were quiet awaiting key earnings data.

News highlights

US North American Summary and Highlights 17 Jul (0100-QSLX-C01)

- Jul Empire State manufacturing fell to 9.8 from 19.8 versus 15.0 exp.

Currencies:

US North American Summary and Highlights 17 Jul (0100-QSLX-C02)

- A generally rather featureless session did eventually see a spike higher for EUR/USD, but it failed to take out last week's 1.1490 high, missing the prize of 1.1500 behind it, although the dip has not settled very far.

- EUR/JPY did bounce further than EUR/USD and has held onto the majority of the gains, if falling short of 129.50. That has allowed USD/JPY to push a little higher, but much of a fairly rapid spike up to 112.86 was gradually erased. The bounce was good news for all those supporting it down at 112.35/40 even if the crosses are still looking more attractive for JPY shorts.

- GBP has lagged behind a little after the strong gains seen ahead of the weekend, attention there turning to Tuesday's inflation data. Cable did avoid breaking below 1.3050, but a return to the 1.31 handle before the data looks unlikely.

- AUD/USD saw a late dip below .78 after facing strong resistance levels at .7835 and .7850. USD/CAD is a shade higher testing but not breaking 1.2700 late in the day. The CAD losses came well after weak existing home sales data was released. The NZD remains the least wanted of the major commodity currencies ahead of Q2 CPI data.

- EUR/CHF slipped back a little but found buyers near 1.1000 and is again closer to 1.1050. EUR/SEK is going nowhere ahead of the Riksbank minutes on Tuesday, while the NOK has edged ahead with NOK/SEK taking a turn up on 1.02.

Bonds:

US North American Summary and Highlights 17 Jul (0100-QSLX-C03)

10yr UST yields moved back to flat following early gains despite a softer than expected Empire State release, but picked up again later. Later trade saw the curve flattening with long end yields beating earlier lows but the front end seeing some selling. 2s +0.0bps @ 1.36%, 5s -1.5bps @ 1.85%, 10s -2.5bps @ 2.31%, 30s -2.7bps @ 2.89%.

- Agency Spreads: Freddie/Fannie 5s 0.0/-0.9 bps, 10s -0.7/-1.5 bps.

- Swap Spreads: 2s -0.54bps, 5s -0.50bps, 10s -0.82bps.

Equities:

Equities struggled for direction ahead of key earnings data, health care and financials the main restraints. The indices closed virtually unchanged.

To Be Released -

Data:

22:45 GMT - NZ: CPI (Q2) % y/y (Mkt: 1.9 Prev: 2.2)

01:30 GMT - AU: New motor vehicle sales (Jun) % m/m (Mkt: Prev: 2.9)

07:00 GMT - AT: CPI (Jun) % m/m (Mkt: Prev: 0.1)

08:30 GMT - UK: CPI (Jun) 4cast: 0.1% m/m (Mkt: 0.2 Prev: 0.3)

08:30 GMT - UK: CPI (Jun) 4cast: 2.8% y/y (Mkt: 2.9 Prev: 2.9)

08:30 GMT - UK: Input Prices (unadj.) (Jun) % m/m (Mkt: -0.9 Prev: -1.3)

08:30 GMT - UK: Input Prices (unadj.) (Jun) % y/y (Mkt: 9.3 Prev: 11.6)

08:30 GMT - UK: Output Prices (unadj.) (Jun) % m/m (Mkt: 0.1 Prev: 0.1)

08:30 GMT - UK: Output Prices (unadj.) (Jun) % y/y (Mkt: 3.4 Prev: 3.6)

08:30 GMT - UK: Output Prices Core (unadj.) (Jun) % m/m (Mkt: 0.1 Prev: 0.1)

09:00 GMT - DE: ZEW (Current Conditions) (Jul) 4cast: 89index (Mkt: 88 Prev: 88)

09:00 GMT - DE: ZEW (Economic Sentiment) (Jul) 4cast: 22index (Mkt: 18 Prev: 18.6)

09:00 GMT - EU: ZEW (Economic Sentiment) (Jul) 4cast: 22index (Mkt: Prev: 37.7)

12:30 GMT - US: Import Price Index (Jun) % m/m (Mkt: -0.2 Prev: -0.3)

14:00 GMT - US: NAHB Builders survey (Jul) index (Mkt: 67 Prev: 67)

20:00 GMT - US: Net Long-term TICS Flows (May) USD bn (Mkt: Prev: 1.8)

Events & Auctions:

00:30 GMT - AU: RBA July Rate Meeting Minutes

06:30 GMT - SE: Riksbank to publish minutes of July policy meeting


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