ForexLive Americas FX news wrap: The rollercoaster continues

Author: Adam Button | Category: News

Forex news for US trading on February 9, 2018:

Markets:

  • Gold down $4 to $1314
  • Bitcoin up $470 to $8642
  • US 10-year yield flat at 2.82%
  • WTI crude oil down $2.12 to $59.03
  • GBP lags on the week, JPY leads
  • S&P 500 up 38 points to 2619

Minutes felt like hours on Friday as equity markets took wild swings from high to low. Two drops down (and slightly below) the 200-day moving average inspired a drop in USD/JPY down below the January low to the worst level since September at 108.05. After the bounce in stocks, USD/JPY came back to 108.70.

EUR/USD played a similar trick as it fell to the lows of the week and took out some stops down to 1.2206. In the late bounce in risk assets, the euro bounced to 1.2233.

Cable finished up a miserable week by falling as low as 1.3765 before a bounced to 1.3820. The low took cable back to the Jan 16 levels and down almost 500 pips from the highs.

USD/CAD was a big focus of the day. The market was really unprepared for the Canadian jobs report, which was destined to be soft. The drop of 88K jobs was the worst since the crisis and USD/CAD spiked 100 pips higher but at the same time, wages were high at 3.3% compared 2.7% prior. That also should have been anticipated because of a jump in the minimum wage. At the end of the day, the market was baffled by the report and the brutal drop in oil and finished down 20 pips on the day to 1.2585.

AUD/USD was relatively well behaved. It jumped early and hit 0.7829 before jitters hit hard and took it down to 0.7775. Given the volatility elsewhere, the 45-pip range is extraordinary given the moves in stocks.

The S&P 500 traded in a range of 2532 to 2638 -- 106 points to end a harrowing week.