Forex news for North American trade on July 12, 2021:
- US sells 10-year notes at 1.371% vs 1.374% WI
- Schumer says Senate committees "are getting closer" on infrastructure
- Fed's Williams: The US economy hasn't reached substantial further progress
- Bank of Canada appoints Carolyn Rogers as new deputy
- ECB's Kazimir: Changes will strengthen our toolbox and enhance anchoring of inflation expectations
- Barkin benchmarks his taper timeline
- OPEC+ yet to make progress in closing divisions - report
- Gold down $2 to $1806
- US 10-year yields up 0.8 bps to 1.37%
- S&P 500 up 14 points to 4383
- WTI crude oil down 40-cents to $74.16
- USD leads, NZD lags
Markets began Monday's New York session in a bad mood but it slowly improved as the hangover from the weekend soccer faded. That slowly lifted equities, Treasury yields and commodity currencies. Overall though, the moves were modest.
EUR/USD ran some modest stops to a session low at 1.1836 just as New York came online but it slowly climbed from there as Treasury yields grinded higher and hit 1.1873 ad the highs before backing off in the US afternoon.
USD/JPY steadily strengthened to 110.40 before backing off slightly following a slight stop-through on the 10-year auction. The lower yields didn't stick but USD/JPY couldn't get to new highs.
Cable rose above 1.39 to challenge the Friday high before giving some back as Javid walked back comments saying there would never be another lockdown. Cases and hospitalizations are creeping up in the UK.
Commodity currencies were standout performers in NA trade with USD/CAD falling to 1.2454 and finishing near the lows of the day after cracking 1.25 earlier. Oil pared declines and that helped out.
The kiwi was the worst performer on the day but with only a 0.2% decline. It recouped much of the losses in New York trade but will need to get back over 0.7000 to wipe them out.