ForexLive Americas FX news wrap: Draghi gets a light jawbone workout

Author: Adam Button | Category: News

Forex news for US trading on September 7, 2017:

ECB/Draghi

News

Markets

  • Gold up $14 to $1348
  • WTI Crude down 5-cents to $49.11
  • US 10-year yields down 6 bps to 2.04%
  • S&P 500 float at 2465

It was all about the ECB to start the day and all about the US dollar later as falling Treasury yields undercut the dollar.

The euro was the top performer despite a half-hearted attempt by Draghi to do some jawboning. In hindsight, he could have said almost anything and the euro was going to go higher anyway.

He said a decision on the taper is likely in October and that's when EUR/USD kicked up to 1.2059 from 1.1950 at the whipsaw low on the statement. It was chop from there to a finish at 1.2025.

USD/CAD's finish was also notable as it was at the low of the day at 1.2119, that's below the latte 2015 low and clears the way for a test of 1.20 or below.

Cable was messy as it ran to a high of 1.3116 in the dollar selling on the ECB before falling back to 1.3062 and then climbing to 1.3099 to finish.

AUD/USD also had a strong day and closed at a session best 0.8047, up from 0.7970 in Asia.