Forexlive Americas FX wrap: Buyers take the USD higher as correction continues
Forex news for NY trader on February 7, 2018
- Volatile session ends with selling. Major indices end lower on the day
- RBNZ's Spencer says no reason to change forecasts after equity volatility
- NAFTA comments from the US - Cornyn says encouraged Trump won't leave NAFTA
- US consumer credit for Dec 18.447B vs 20.0B expected
- RBNZ keeps OCR rate unchanged at 1.75%
- US crude oil futures settle at $61.79. Tests key support.
- USDCAD trades at day highs. Approaches some tough resistance though.
- White House says pleased Congress has reached two-year spending deal
- Some concerns about the stocks re-enters in the market.
- Soft Treasury auction will get US yields moving higher again
- The US dollar is on a tear. It's nearing breakouts on a few fronts.
- More Evans: Speaking to reporters after speech
- Swiss regulators say they're in contact with Credit Suisse regarding VIX-related products
- EURUSD continues the steps lower...
- Wells Fargo downgraded to A- from A by Standard & Poor's
- WTI crude oil falls below $62 as US production jumps. Canadian dollar at session low
- ECB's Nowotny drops a bomb: says US deliberately trying to keep dollar low
- Fed's Evans sees a hint inflation pressures may be coming
- Be aware. USDCHF hits a key target area.
- US EIA weekly crude oil inventories +1895K vs +3150K expected
- Donald Trump says it's a 'big mistake' that stock markets went down
- Former Fed vice-chair Donald Kohn takes another three-year term at BOE's FPC
- More from Dudley: Fed is focussed on feedback loops in markets
- After falling 70%, Bitcoin is up 40% from the lows despite Goldman Sachs warning
- Merkel says difficult German coalition talks were worth it
- US Fed's Dudley pleased there has been progress in bank culture
- Canada December building permits +4.8% vs +2.0% expected
- The JPY is the strongest, while the CHF is the weakest as NA trader enter
A snapshot of other markets is showing:
- Spot gold down $-5.96 or -0.45% at $1318.10
- WTI crude oil futures are down $-1.87 or -2.87% at $61.57. Crude oil inventory data showed a larger than expected add in the current week.
- Bitcoin futures recovered, but still stalled against the 200 hour MA (using Coinbase). The price was trading above the 100 hour MA (blue line) but below the 200 hour MA (green line below) into the NY session close (see chart below)
- US yields moved higher after a sloppy 10 year auction. 2 year 2.123%, up 1.8 basis points. 5 year 2.556%, up 1.7 basis points. 10 year 2.8321%, up 3.0 basis points. 30 year 3.109%, up 4.3 basis points
- US stocks ending down in a volatile session. S&P -13.48 points or -0.50%. NASDAQ -63.89 points or -0.90%. Dow -19.42 points or -0.08%. See the closing report HERE.
Fed's Evans spoke and although he did say that current data warrants Fed on hold until mid-year, he did say he would support further hikes if inflation picks up and that his dissent in December was a close call. He also said he sees unemployment at 3.5% by the end of the year. So although he kept his dovish bias, that bias did come with some caveats, and some aggressive expectations for employment too.