Forex news for North American traders on August 19, 2021
- Dow closes lower for the third consecutive day
- Dr Fauci: In order to maintain the durability, we recommend a booster dose
- WTI crude oil futures settle at $63.69
- Microsoft will raise Office 365 business subscription prices in 2022
- Treasury Secretary Yellen: It may make sense to extend unemployment benefits in some states
- European indices close sharply lower
- Cathie Wood: I don't think we are in a bubble
- US treasury announces auction supply for next week's trading
- US leading index comes in at 0.9% versus 0.7% estimate
- US major indices open lower but see some rebound in early trading
- Canada ADP employment data showed a gain of 221.3K vs -294.2K last month
- Philadelphia Fe 1.9 21.9d manufacturing index for August 19.4 versus 23.2 estimate
- US initial jobless claims 348K vs 362K estimate
- Pres. Biden says he will receive the Covid booster
- The JPY is the strongest and the AUD is the weakest as NA traders enter for the day
The USD moved higher today. It was the strongest of the major currencies with most of the gains vs the commodity currencies. The USD rose 1.35% vs the CAD. It rose 1.15% vs the AUD and 0.87% vs the NZD. The greenback also rose 0.87% vs the GBP. Those currency pairs are all trading near the dollar high extremes at the end of the trading day.
Helping the run is a sharp move lower in commodities. The CRB commodity index is trading down 1.80% on the day.
Crude oil is down close to 1% at $63.90 after trading as low as $62.61 on the day. The price is down -18.5% from the July high.
The price of copper is down -1.48% today and down -18.5% from its 2021 high in May.
Lumber futures are back trading at October 2020 levels at around $470 after trading over $1700 at the peak in May.
In economic data today, the weekly initial jobless claims came in at the lowest level since the pandemic began at 348K. The number coincides with the survey week for the BLS jobs report next month. As a result, it is point to a robust report (at least from that measure). That helped the USD as well.
In contrast the Philadelphia Fed manufacturing index followed the Empire manufacturing index released last week in being weaker than expectations. Although it came in above the 0.0 level at 19.4, it was all the expectations of 23.2 and also lower than last month's reading of 21.9. The employment component did rise to 32.6 versus 29.2 last month. The index is decline with the fourth consecutive moved to the downside.
Completing the up and down in the data releases today, the leading index rose by a greater than expected 0.9% versus 0.7%.
In other markets today, despite the rise in the dollar, US interest rate moved to the downside. The 10 yield was down -3.1 basis points to 1.242%.
In the US stock market, the major indices close mixed but are still on track for a negative close for the week. The NASDAQ and S&P had modest gains up 0.11% and 0.13%. The Dow industrial average fell for the third day in a row.
In other markets:
- Spot gold reacted to the dollars rise by falling $8.79 or -0.49% to $1778.60.
- Spot silver fell $0.30 or -1.28% to $23.20
- WTI crude oil futures are trading down $0.71 or -1.11% at $63.87
- Bitcoin is trading up $1866 at $46,586
