Forex news for North American trade on September 18, 2017
- BOE's Carney: Repeats some tightening may be needed in coming months
- NAHB housing market index for September 64 vs 67 estimate
- Gary Cohn says he reaffirmed Trump's position on Paris climate deal
- US defense sec Mattis says there are North Korea military options that would not risk Seoul
- BOC's Lane: We will be taking Canadian dollar into account "strongly"
- Lane: BOC 'paying close attention' to impact of stronger Canadian dollar
- Theresa May says Canada-UK trade deal should be a cinch after Brexit
- US 10 year yield approaches 100 day MA
- Lighthizer: China's approach to trade is 'threat' to the world
- Canada July international securities transactions +23.95B vs -0.92B prior
Markets:
- Euro and US dollar lead, Canadian dollar lags
- WTI crude up 3-cents to $49.92
- Gold down $13 to $1307
- US 10-year yields up 2.8 bps to 2.23%
- S&P 500 up 4 points to 2504
Mark Carney cast himself as The Reluctant Hawk in a speech on Monday and that helped to unwind 100 pips of the recent monster cable rally. He said one of the reasons to hike was that others were doing it too, he also said Brexit was inflationary. The pound fell as lower as 1.3465 before bouncing to 1.3493 to close out the day.
USD/CAD was the other big story after the BOC's flexed his jaw on CAD and then did it again. The talk about the loonie overshadowed some upbeat comments on the loonie and USD/CAD rose to 1.2338 from 1.2227 in a nearly straight line. It moderated to 1.2293 from there.
AUD/USD was dragged lower by the loonie selling. It was also pulled lower by the broader bid in the US dollar. That's been a theme since last week and continues to pay. AUD/USD fell as low as 0.7940 from 0.8040 in Asia-Pacific trading.
EUR/USD was locked in a roughly 1.1920 to 1.1960 range and finishes near the top.
The more-interesting trade was in USD/JPY as it gapped higher at the open to 111.10 from 110.80 and then slowly grinded up to 111.60 before paring 20 pips of gains late. It's the BOJ meeting this week but today's move was more about risk appetite and yield differentials.
