Forex news for New York trading on Sept 11, 2017:
- Irma downgraded to tropical storm
- Bank of Canada gets into a spat about communication
- Expect tax talk to be a driver of the US dollar in the week ahead
- US sells 3-year notes at 1.433% vs 1.427% WI
- Barclays trade of the week: Sell AUD/NZD
- UN Security Council vote on North Korea coming at 6 pm ET
- Mitt Romney plans to run for US Senate if Orrin Hatch retires - report
- Canada housing starts 223.2K vs 216K. estimate
Markets:
- Gold down $19 to $1327
- WTI crude up 58-cents to $48.06
- S&P 500 up 26 points to record close 2488
- CAD leads, JPY lags
- US 10-year yields up 8 bps to 2.13%
It was all about Irma on Monday as the storm spared large parts of Florida. The US dollar and stock markets rallied in relief.
USD/JPY finished at the highs in a steady climb to 109.46 after gapping 30 pips higher to 108.13 at the open. Most of those gains came in New York trade as the sun rose on an intact Florida and reports on storm surges showed manageable damage.
The dollar rally was slightly less elsewhere. The euro fell 80 pips to 1.1954. It came in fits and starts but also finished on the lows.
Cable held its ground more stubbornly and finished the day only 30 pips lower. That's a good sign the two-week rally in the pair still has lift left.
AUD/USD finished the day down 30 pips and it was a fight all the way down. Each 5 pip fall further was met by a 4 pips bounce.
The Canadian dollar once again showed its mettle as it withstood the USD rally, in part because of a bounce in oil prices. The pair rose as high as 1.2170 but finished back down at 1.2118 as the BOC hike continues to reverberate.
