Forex news for US trading on March 11, 2016:

  • February 2016 Canadian employment change -2.3k vs 9k exp
  • CFTC Commitments of Traders: Specs wrong on EUR but right on AUD
  • Baker Hughes US oil rig count 386 vs 392 prior
  • Citigroup head of spot FX resigns
  • ECB's ability to act hasn't run out say Liikanen
  • February 2016 US import prices -0.3% vs -0.6% exp m/m

Markets:

  • S&P 500 up 31 points to 2021
  • Gold down $22 to $1250
  • WTI crude up 74-cents to $38.58
  • US 10-year yields up 4 bps to 1.98%
  • AUD leads, JPY lags

The Canadian dollar quickly bounced back after a weak employment report. USD/CAD rallied 60 pips to a session high of 1.3310 immediately after the numbers but after spending 20 minutes there, the pair reversed and then fell all the way to 1.3160 on a climb in oil prices and better risk appetite. Late in the day the pair recovered to 1.3223 but was still down more than 100 pips on the day.

The commodity currencies in general had a strong bid. The Australian dollar was at 0.7511 at the start of US trading and then ran buy stops just above in a run up to 0.7580 and has consolidated between there at 0.7550 since.

The euro reverberations from Thursday remained a hot topic. As US traders arrived, EUR/USD appeared to be headed towards a retracement but New York bought the dip to 1.1081 and bid the euro almost up to 1.1200 before it sagged back to 1.1150, down about a quarter cent on the day.

Cable held a good bid in US trading as the US dollar came under broad pressure. GBP/USD ripped up to 1.4437 from 1.4280 in a quick move after the US stock market opened. It sagged back to 1.4380 after Europe went home.

Gold selling was a separate theme and the entire ECB rally has now been wiped out. Gold sank down to $1250 on late-day selling.