ForexLive Americas FX news wrap: Stock markets crushed again

Author: Adam Button | Category: News

Forex news for North American trade on December 21, 2018:

Markets:

  • Gold down $4 to $1256
  • WTI crude down 47 cents to $45.51
  • US 10-year yields down 2 bps to 2.79%
  • S&P 500 down 51 points to 2416
  • JPY leads, NZD lags

The Fed's Williams tried to ride to the rescue of the market by walking back some of Powell's comments and his own comments about the path of rates. He said that a balance sheet wind down could be adjusted and that rate hikes would slow if the economy did. It was a much more humble appearance than at the start of the month.

His comments led to a bid in the stock market and the S&P 500 was up more than 30 points at the highs. Once again, the wheels came off late in the day as the index down another 2% in the worst week for the S&P 500 since 2008. At these levels, the December decline of 14% would be the second worst on record, trailing only 1931.

The commodity currencies were especially hard hit as AUD and NZD both fell about 1% and finished on the lows. AUD/USD is just above the November low of 0.7020.

USD/CAD gained for the seventh consecutive day and hit 1.3602, which is a fresh high since May 2017.

EUR/USD erased the Wed-Thurs rally in a 75-pip fall to 1.1366. Here's an unbelievable stat: The volatility in the euro has been the lowest in the past two months since inception.

Cable bounced around on the London fix in a couple quick moves. In the end it resolved lower as the US dollar stormed ahead. On the day it finished at 1.2645.

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