Forex news for US trading on July 14, 2016:
Markets:
– Gold down $9 to $1333
– S&P 500 up 11 points to fresh record 2163
– US 10-year yields up 6.3 bps to 1.54%
The big news on the day came before US trading ramped up. The BOE didn’t cut rates as expected and that led to a big rally in GBP. The cable highs came immediately after the announcement and at 1.3475. We finish 130 pips lower and it fell as much as 160 pips. The lack of follow through initially suggests plenty of appetite waiting in the wings to sell. But that could also being a fuction of the BOE pre-committing to easing in August.