Forex news for North American trade on April 16, 2019:
- 'No agreement' on customs union between Labour and Conservatives - Corbyn
- McCrann helps to boost Australian dollar
- New Zealand dairy prices rise for tenth straight auction
- China looking to lift a ban on poultry and possibly looking to buy more pork
- Germany fin min says now not the time to abandon 'no new debt' policy
- Larry Fink expects 'rush' back into stocks as economy picks up
- ECB's Nowotny: Sees no reason to change guidance
- US April NAHB housing market index 63 vs 63 expected
- US March industrial production -0.1% vs +0.2% expected
- Canada February manufacturing sales -0.2% vs -0.1% expected
Markets:
- Gold down $11 to $1276
- WTI crude up 76-cents to $64.16
- US 10-year yields up 3 bps to 2.58%
- S&P 500 up 1 point to 2907
- CAD leads, GBP lags
Cable losses were a key feature in a mostly feature-less day in North American trading. The pair slid to 1.3050 from 1.3085 at the start of trading. The main headline was a report in the Guardian where Corbyn said negotiations on a customs union had stalled. The headlines sent it down to 1.3050 but it retraced completely in part because the story wasn't quite as negative as the flash. The selling resumed later in part due to broader USD strength.
EUR/USD also closed near the lows at 1.1285 in a 20 pip fall in North American trade. Selling hit earlier on ECB negativity about an H2 rebound and tired deposits, which look to be DOA. So far the 1.1280 level has held and that's where to watch.
USD/CAD was under pressure all day. Looking at the close you might expect oil was the culprit but crude spent much of the day in negative territory and the loonie wasn't tracking tick for tick. I expect some investment was flowing into Alberta ahead of election results later that are forecast to show a change to a business-friendly government.
AUD/USD was beaten up on the more-dovish RBA minutes but that reversed after a McCrann article said they weren't cutting. You can take the article at face value or read it as a sign that AUD shorts are nervous.
USD/JPY wasn't much of a mover. It hit 111.90 only to rebound to 112.05. US yields are at four-week highs and the market is slowly losing faith in Fed cuts. That dynamic is a big reason that oil was so beaten up and briefly took out the 2019 low.
