Forex news for New York trade on August 30, 2021:
- US July pending home sales -1.8% m/m vs +0.4% expected
- Fed's Mester: Thinks growth will remain strong but big risk is delta
- Another poll puts German conservatives behind
- Dallas Fed August manufacturing index 9.0 vs 27.3 prior
- Trudeau crashes in pre-election polls. New government increasingly likely
- Canada Q2 current account +3.58B vs +1.18B prior
- Germany August preliminary CPI +3.9% vs +3.9% y/y expected
- Fmr Richmond Fed Pres Lacker: Fed will have to nudge up expected path of rates
- PayPal is exploring the launch of equities trading - report
Markets:
- S&P 500 up 21 points to 4526
- US 10-year yields down 3.4 bps to 1.278%
- Gold down $6 to $1810
- WTI crude oil down 29-cents to $69.03
- Euro leads, Swiss franc lags
The UK was out today and that put a lid on FX price action. One exception was EUR/CHF, which the SNB likely took advantage of on a quiet day to dabble in some intervention.
USD/CAD tried to push the downside but two solid moves below 1.26 were caught and the pair finished only marginally lower despite some help from oil.
The pending home sales and Dallas Fed were both on the soft side but had no noticeable impact on prices with the market more focused on month-end tomorrow and a heavy slate of economic later in the week.
For the most part, FX moved sideways as Treasuries and stocks continued Friday's post-Powell moves. That kind of dovish setup should have weighed on the dollar but it didn't materialize in any meaningful sense.
