Forex news for North American trade on April 19, 2021:
- Canada budget pledges $101.4B over next three years on measures to boost recovery
- Biden admin in early stages of developing crypto regulator approach - report
- Biden says he's willing to compromise on infrastructure
- OPEC+ might skip full ministerial meeting next week
- Bank of Israel keeps benchmark rate at 0.10%
- Canada March housing starts 335K vs 255K expected
Markets:
- Gold down $6 to $1770
- WTI crude up 27-cents to $63.40
- US 10-year yields up 2.6 bps to 1.60%
- S&P 500 down 22 points 4163
- GBP leads, CAD lags
The reversal in cable on Friday was a great clue about what was coming today. It powered higher in a steady climb into the London fix, topping out just below 1.4000 in a 150 pips climb. After the fix it went straight sideways but right at the top of the range.
The larger theme was USD weakness and the euro took full advantage in a 50 pip rally. It had stumbled to 1.1940 early in the day after flirting with 1.20 late last week. But it got back on the horse early in Europe and steadily climbed higher before busting through and running to 1.2040.
CAD was the only currency that couldn't take advantage of the soft dollar. It did hit a one-month high early but then gave it all back on budget apprehension and uncertainty about what the BOC will do next. Risk aversion also hurt the loonie as US equities gave a bit back.
USD/JPY fell to the lowest since March 8 as it hit stops below 108.50 but couldn't get through 108.00. There was a bounce to 108.30 but it was short-lived.
Without much economic news to chew on, the market was squaring up some moves and fretting about all the craziness in crypto and meme stocks.
