ForexLive Americas FX news wrap: Dollar dips then storms back

Author: Adam Button | Category: News

Forex news for North American trade on Sept 10, 2020:


  • Gold down $2 to $1945
  • WTI crude oil down $1.00 to $37.05
  • US 10-year yields down 2 bps to 0.68%
  • S&P 500 down 60 points to 3339
  • CHF leads, GBP lags
This was a day with a bit of everything. Lagarde was the star early and her comment that the ECB wasn't targeting FX immediately sent EUR/USD higher by 40 pips. It continued to rise through the press conference as it became clear they're nowhere near doing anything to weaken the euro.

US equities initially dipped on the weekly jobless claims report but it was quickly overlooked and the market opened strong and then continued higher in the first hour of trading to match Wednesday's high. That kept the pressure on the US dollar initially but it was FX that turned before stocks. The commodity currencies peaked and started to turn in the other direction, CAD in particular.

From there it was a series of drops and bounced in EUR/USD as it fell more than 100 pips from the highs. The commodity currencies also gave back all their gains and finished solidly lower.

The pound was another story as it crumbled 200 pips to fall all the way back to the June highs. The rewriting of the Brexit deal isn't going over well in the EU and they set an end-of-month deadline on reworking the legislation. Barnier also outlined a laundry list of negotiation priorities that have made no progress. The market has heard enough to sell the pound heavily but it could pop in a hurry if BoJo backs down.

USD/CAD didn't move much on Macklem. He noted that the BOC is watching the loonie and that it will place downward pressure on prices but that didn't bother the market. The drop in oil and equities did though and USD/CAD recouped much of yesterday's drop.
Forex news for North American trade on Sept 10, 2020:

By continuing to browse our site you agree to our use of cookies, revised Privacy Notice and Terms of Service. More information about cookiesClose