Forex news for North American trade on Aug 13, 2020:
- US sells 30-year bonds at 1.406% vs 1.378% WI
- US weekly initial jobless claims 963K vs 1100K expected
- US import price index for July 0.7% vs. 0.6% estimate
- Brainard says Fed assessing opportunities and challenges in digital FX
- Mexican central bank overnight rate 4.50% vs 4.50% expected
- US sells 30-year bonds at 1.406% vs 1.378% WI
- Florida case count rises by 6236 vs. 8183 yesterday
Markets:
- Gold up $35 to $1951
- US 10-year yields up 3.6 bps to 0.711%
- WTI crude oil down 32-cents to $42.35
- S&P 500 down 7 points to 3373
- CAD leads, NZD lags
The US dollar was soft early in the day but strengthened after a surprise rise in yield at a 30-year bond auction. It was one of the worst misses in years at a bond auction and the resulting higher yields lent a broad bid to the dollar and some risk aversion overall.
EUR/USD rose as high as 1.1864 early in New York trade but struggled in the afternoon and was sucked back to 1.1800. It was similar in cable as the rally to 1.3125 was almost totally erased in a fall back to 1.3049.
USD/CAD finished lower for a fourth day and fell to the lowest since February at 1.3192. The loonie benefited from higher oil prices early and a rebound in precious metals. As crude gave back the gains and the dollar rose, USD/CAD rebounded to 1.3230.
Unlike the loonie, the Aussie and kiwi fell on the day, losing 20 and 40 pips respectively. The selling came late and erased most of the gains a day earlier.
