Forex news for NY trading on August 11, 2020.

At the start of the NY session gold was down -2.43% and silver was lower by -4.58%. The dollar was lower and near the lows for the day. Yields were higher. Stocks opened with the Nasdaq down for the 3rd day in a row, while the Dow and S&P were up for the 8th day in a row (at least at that point). WTI crude was up 1.84%

By the end of the day:

  • Gold tumbled -5.78% or -$117 at $1910.20
  • Silver got hammered and is down -$4.34 or -14.9% at 24.77
  • WTI crude oil is ending down -1.0% ore $41.52

In the US bond market, yields pushed even higher with the 10 year running up to 0.6598% at the high. That was up over 8 basis points. The 30 year moved up to 1.3523%, up near 10 basis points.

Traders can point to the fall in precious metals and rise in yields to optimism over the prospects for a vaccine (Russia did crown themselves the king of the vaccine race today) and some hope of a slowdown in the COVID cases in the US. President Trump spoke to more tax cuts which could also be a help.

However, on the other extreme (less optimistic view) is that Florida posted a record 276 deaths, California saw the 2nd highest one day rise in virus cases. The US treasury began their 3, 10 and 30 year refunding auction for the month which by the way will be another record due to the high deficits. As a result, yields may have backed up due to the supply.

Then there are the stocks.

The Nasdaq continued it's move lower and closed down -185 points or -1.69% at 10782.83. The S&P index and Dow, ended up joining the Nasdaq sell off by the close. The S&P, which toyed with a new all time record high, closed down -26.78 points or -0.80% at 3333.69. The Dow was up 363 points at the high, but is closing down -104.53 points or -0.38% on the day.

In the forex market, as mentioned, the dollar started the day lower but reversed and moved back higher. It is ending higher on the day vs all the major currencies with the exception of the CAD. The JPY is ending as the weakest with the USDJPY moving up 0.47% near the close. The Pavlovian reaction of late was lower dollar, higher metals. Today with gold going lower early and the dollar down, something was amiss, until it unraveled and the greenback went the other way.

Forex news for NY trading on August 11, 2020.

As a result, if you were to look at the major currencies vs the greenback, most saw the dollar initially move lower, but then saw the green back erase the declines and move higher by the end of the day. The rises in the USD were not all that great in magnitude, but they did erase and reverse what were lower levels at the start of the NY session.

Other news today of significance that may have had a negative impact on stocks, is that two major college football conferences postponed the upcoming season. There are three other major conferences and the NFL which are still "a go" for the upcoming season. However, if they succumb to COVID, that is a big impact to the economy and the nations feel good psyche.

Dem Pres. candidate Biden picked Kamala Harris as his VP candidate. If Biden is elected she would be the first woman and first black and So. Asian Vice President. Geraldine Ferraro was the running mate for Walter Mondale in 1984, and Sarah Palin was the running mate for John McCain in 2008. Mondale lost to Ronald Reagan and McCain lost to Barrack Obama. Debates begin in September. There will be three Presidential debates and one Vice Presidential debate.