Foreign exchange information for North American commerce on Sept 10, 2020:
- Gold down $2 to $1945
- WTI crude oil down $1.00 to $37.05
- US 10-year yields down 2 bps to 0.68%
- S&P 500 down 60 factors to 3339
- CHF leads, GBP lags
This was a day with a little bit of every little thing. Lagarde was the star early and her remark that the ECB wasn’t concentrating on FX instantly despatched EUR/USD larger by 40 pips. It continued to rise by means of the press convention because it turned clear they’re nowhere close to doing something to weaken the euro.
US equities initially dipped on the weekly jobless claims report however it was shortly ignored and the market opened sturdy after which continued larger within the first hour of buying and selling to match Wednesday’s excessive. That stored the stress on the US greenback initially however it was FX that turned earlier than shares. The commodity currencies peaked and began to show within the different path, CAD specifically.
From there it was a sequence of drops and bounced in EUR/USD because it fell greater than 100 pips from the highs. The commodity currencies additionally gave again all their positive aspects and completed solidly decrease.
The pound was one other story because it crumbled 200 pips to fall all the way in which again to the June highs. The rewriting of the Brexit deal is not going over effectively within the EU they usually set an end-of-month deadline on remodeling the laws. Barnier additionally outlined a laundry listing of negotiation priorities which have made no progress. The market has heard sufficient to promote the pound closely however it might pop in a rush if BoJo backs down.
USD/CAD did not transfer a lot on Macklem. He famous that the BOC is watching the loonie and that it’s going to place downward stress on costs however that did not hassle the market. The drop in oil and equities did although and USD/CAD recouped a lot of yesterday’s drop.