Foreign exchange information for New York buying and selling on September 16, 2020:
- Gold up $four to $1958
- US 10-year yields up 1 bps to 0.687%
- S&P 500 down 16 factors to 3385
- WTI crude oil up $1.92 to $40.20
- GBP leads, EUR lags
The retail gross sales report in the present day was an even bigger shock than the Fed and I get the sense that a number of the fairness promoting was extra of a delayed response to that gentle quantity relatively than something Powell stated. Granted, the promoting picked up when he indicated that there was no plan to purchase extra bonds (although it stays within the toolkit). That is not a shock nevertheless it was considerably of a set off.
The greenback grabbed a strong bid forward of the FOMC. I feel that was place squaring nevertheless it ended up being the appropriate transfer, at the least after just a few twists and turns. Markets hit the highs and lows of the day throughout Powell in equities however other than USD/CAD the swings have been small in FX.
EUR/USD was significantly gentle in the present day because it fell to 1.1800. A few of that was on EUR/GBP and EUR/CHF promoting.
Underneath the radar was the 5% rally in oil even with every kind of speak about gentle demand. The headlines about an April vaccine certainty helped the temper after they hit however the weekly oil stock knowledge wasn’t as bullish because the API report yesterday.
Gold tried just a few instances to get above $1970 however could not maintain the road and slid backwards. I will be watching it carefully tomorrow as a result of the Fed did not supply something for the gold bulls.