ForexLive Americas FX news wrap: Canadian dollar clobbered

Author: Adam Button | Category: News

Forex news for North American trade on December 6, 2017

Markets:

  • Gold down $1 to $1264
  • S&P 500 flat at 2628
  • US 10-year yields down 2.7 bps to 2.32%
  • WTI crude oil down $1.69 to $55.92
  • JPY leads, CAD lags

The market was leaning towards a hawkish bank of Canada or even a surprise rate hike but the BOC opted to maintain the status quo, including a line that they would be cautious about raising rates. USD/CAD was at 1.2660 before the announcement and rose as high as 1.2807 before finishing at 1.2788. The weakness in oil didn't help the loonie.

The other commodity currencies fell in sympathy with AUD/USD down to 0.7563 from 0.7590 and skidding along the bottom late.

EUR/USD was soft for the second day. Yesterday bids at 1.1800 halted the selling but today the bears broke through in a slide down to 1.1781, which was also below the 100-dma. From there, the pair bounced a dozen pips to close out the day.

USD/JPY had a slight upward bias in US hours after a slide in Asia and Europe. The pair climbed to 112.35 but as generally choppy in a 30 pip range.

Cable sat near the European lows but didn't fall below as bids at 1.3350 held. The market is anxiously awaiting word on whether there will be an Irish border deal.