Forex news for North American trade on December 10, 2019:
- MRP poll model shows a Conservative majority of 24 - report
- Officials sign revised NAFTA agreement
- US sells 10-year notes at 1.842%
- Kudlow says he can't confirm that Dec 15 tariffs will be delayed
- White House Mulvaney: Trajectory toward a phase 1 trade deal is pretty good
- US and Chinese trade negotiators plan for delay of December tariff - WSJ
- US Q3 final unit labor costs +2.5% vs +3.4% expected
Markets:
- Gold up $3 to $1464
- WTI crude up 29-cents to $59.31
- US 10-year yields up 2 bps to 1.84%
- S&P 500 down 4 points to 3132
- CHF leads, JPY lags
European currencies made headway in North American trade as the euro drafted off a strong ZEW and the pound on firming expectations of a Conservative majority (albeit a YouGov poll in an hour could change that). The Swiss franc was also along for the ride.
EUR/USD caught a big bid into the London fix in a relatively quick rise to 1.1095 from 1.1075. It dipped afterwards but has returned to the highs of the day late.
In the UK, the pound rose above 1.32 for the first time since March late in the day but a model poll led to a fall back to 1.3185. We're awaiting another poll at 2200 GMT (5 pm ET).
USD/JPY made headway on rising Treasury yields. A report about repo funding stresses got some special attention today and pushed the idea that banks may be forced to sell bonds to meet liquidity needs. Despite some risk aversion, USD/JPY gained 20 pips, all of it in New York trade.
USD/CAD was relatively flat as oil slipped early but rebounded late to finish higher. Poloz speaks on Thursday in his first comments since the Canadian jobs report. AUD and NZD also moved very little in NY trade.
