FX Action: USD-CAD selling picked up FX Action: USD-CAD selling picked up into the North American open, as stops under 1.2200 were triggered. The move under the 150-day moving average at 1.2182 saw follow through sellers step in, on its way to 1.2129 lows. Corporate bids were reported in place from 1.2120 to 1.2100, and that combined with better Philly Fed and leading indicators data at 10:00 EDT, saw USD-CAD rally back to highs just under 1.2200. Oil prices remain over $60 this morning, which should limit USD-CAD upside for now.
2-Yr Note Announcement Offering Amount data reported 2-Yr Note Announcement Offering Amount at $26.0 B
Fed should let the economy overheat Fed should let the economy overheat according to a well-argued report by WSJ reporter Greg Ip (former Fedwatcher), noting that the "rewards of lower unemployment are worth the risks of keeping rates low for longer". His main point is that with slack in the labor market and a low starting point on inflation, this trumps risk that financial inequality and financial market excess grows.
EIA natural gas storage change for week ending June 12 Gas inventories 89 Bcf build vs. consensus of 93 Bcf build.