Forex news for North American trade on Aug 10, 2020
- US corporate junk bonds sell at record-low 2.875% for 10-years
- US June JOLTS job openings 5889K vs 5300K expected
- Mnuchin: US states have more than enough money to handle shortfalls
- Fed's Evans: Those affected by by crisis will need help from new policies
- California governor says state can't afford Trump's unemployment executive order
- Trudeau has tapped Mark Carney as informal advisor on virus recovery plan
- Trump says US won't proceed any further with Kodak unless allegations are cleared
- Lebanon's prime minister to soon announce resignation
- UK PM will set out and the end of the week on whether to reopen rest of economy
Markets:
- Gold down $9.50 to $2026
- WTI crude up $0.83 to $42.05
- US 10-year yields down 1.3 bps to 0.577%
- S&P 500 up 9 points to 3360
- CAD leads, EUR lags
The emotion in the market was low to start the week and that's no surprising with summer holidays in full-swing, post non-farm payrolls and earnings.
The main move was a slump in the US dollar early in New York trade that was later reversed on most fronts. It led to 30 pip rise in AUD/USD followed by a fall of the same size and a flat finish on the day.
Elsewhere it wasn't quite so v-shaped. The euro made the same kind of 30 pip pop but then gave it all back and more to finish at the lows of the day and down a half-cent. We get the ZEW survey in the day.
Data will also be key in cable with jobs numbers coming up. Ther was a wave of selling early in Europe that was picked up aggressively in a run to 1.31 but after the London close the pair drifted down to 1.3070.
The market still doesn't know what to make of Trump's executive order and expiring stimulus benefits. There was a wave of risk aversion midway through trading, led by tech but (as always) the equity dip buyers arrived and won the day.
The Canadian dollar benefited from oil and commodity strength and was able to hold those gains even as commodities gave most of it back.
