ForexLive Americas FX news wrap: China deal talk boosts risk trades
Forex news for Americas trading on September 10, 2019:
- China ready to sweeten deal by buying American goods - report
- Carney: We don't see big imbalances in economy that would normally precipitate slowdown
- Trump fires uber-hawk John Bolton as national security advisor
- US July JOLTS job openings 7217K vs 7331K expected
- OPEC's Barkindo: We have been very conservative with demand forecasts
- Navarro: A lot of mischief creeps into the news to move the markets
- Canada building permits +3.0% vs +2.0% expected
- Canada August housing starts 226.6K vs 212.5K expected
- DUP leader says Johnson confirmed rejection of Ireland-only backstop
- Around 50 Labour MPs would vote for a Brexit deal similar to May's, group says
- Gold down $14 to $1485
- WTI crude flat at $57.89
- S&P 500 up 1 point to 2979
- US 10-year yields up 9.6 bps to 1.74%
- CAD leads, JPY lags
It's somewhat remarkable to see NZD, AUD and CHF all trading precisely unchanged on the day against the US dollar. Stocks were also flat for the second day. But that doesn't show how lively the day was.
The China story helped lift risk trades as it slowly did the rounds while the Bolton firing hurt oil prices and the halted a drop in USD/CAD.
Gold was nearly unchanged as North America arrived but it bled lower late to finish at the worst levels of the day.
The story that's worth watching most-closely is in bonds with Treasury yields making a fairly dramatic uniform 10 bps move across the curve. The 10-year is now more than 30 bps off the lows from last week in a sign of a bit of a rethink on the path of central banks and the global economy.
That story is continuing to give USD/JPY a lift. The pair stalled out ahead of 107.50 three separate times today but eventually found its way through to finish slightly above that and at a session high.
The euro remains locked down around 1.1042. There was a fresh 'sources' report about the ECB refraining from QE and saving it for later but that's not particularly new.