Forexlive Americas FX news wrap: Mnuchin giving it one more try. So far no luck.
Forex news for September 30, 2020.
- Mnuchin says there is still no agreement on stimulus deal
- Seasonals: October tends to be a strong month for US equities, except in election years
- Mnuchin has left Pelosi's office. Waiting on comment
- Crude oil futures settle at $40.22
- McConnell: Republicans and Democrats are far apart of virus relief
- Moderna says its vaccine won't be ready before US election
- CAD is stronger today but there are cracks in the big-city condo market
- The Mnuchin-Pelosi meeting hasn't been a short one
- Fed's Bowman: Data suggests US is recovering at a rapid pace
- White House's Meadows says he's seen substantial movement on a stimulus deal
- September seasonal scorecard: Selling gold worked
- Senate Majority Leader McConnell: Pelosi's latest aid bill has poison pills
- European indices close with mixed results
- Weekly EIA oil inventory report -1980K vs +1000K expected
- US pending home sales for August +8.8%% vs. +3.1% estimate
- "Who will win the election?" is the wrong question
- Mnuchin on stimulus: "We're going to give it one more serious try to get this done, we're hopeful"
- Germany says delays in EU recovery fund is most likely unavoidable
- Barkin: Fed guidance will be 'particularly powerful' as economy comes back
- ECB's Villeroy talks about symmetrical inflation target
- US final GDP for 2Q -31.4%% vs -31.7% estimate
- Canada July GDP +3.0% vs +2.9% m/m expected
- Layoff announcements are more ominous than jobs reports
- The USD is the strongest and the CHF is the weakest as NA traders enter for the day
- ADP September employment +749K vs +649K expected
After the debacle called a Presidential Election Debate last night, it seemed that the Dems, and GOP woke up from the nightmare with ideas of potentially reaching some sort of agreement on a new stimulus deal. After all the threat of voting everyone out come November was seeming like a good idea by the American people.
Also helping the "Deal on" sentiment, was news that Disney, Continental, Shell, Marathon Petroleum and Dow Chemical were looking toward cutting jobs. Of course, there are the airlines as well who are sitting on a knifes edge wondering if there will be more bailout funds before they give up on their employees as well. Oh....did I mention small to mid-sized companies which are about to throw in the towel as the reopening sputters and fears of a 2nd wave (or is it still the first wave) grows.
All that had Treasury Secretary Mnuchin saying he was going to give it "one more try" for a new stimulus deal. House Majority Leader Pelosi was also hopeful. White House's Meadows said "he's seen substantial movement on a stimulus deal".
As a result, stocks moved higher, the dollar started to move lower, gold prices moved higher as did yields on treasuries and crude oil futures. The risk on flows were flourishing in all markets.
Also helping risk-on was better economic data.
- The ADP employment for September came in better-than-expected at 749K vs. 649K estimate
- The Chicago PMI unexpectedly jumps to 21-month high of 62.4
- US pending home sales rose by 8.8% vs. 3.1% estimate and increased by 20.5% year on year. Housing remains on fire as a result of the suburbanization trend.
- The GBPUSD moved from 1.2850 to 1.2942 during that time and trade to the highest level since September 21
- The EURUSD move from 1.1690 to a NY session high at 1.1751
- The USDCHF moved from 0.9244 to 0.9162
- The USDCAD started a move lower that saw it's pair fall from 1.3387 to a day low at 1.3301 (before finding some buyers).
- Gold give up its gains above $1900 (the high price reached $1902.35), and is trading at $1885.42, down $12.60 or -0.66%
- spot silver is also trading lower by $0.94 or -3.92% at $23.24
- WTI crude oil futures are still higher by $0.56 or 1.43% at $39.85, but well off the high price of $40.37.
- US yields on the longer end are down about 3 to 4 basis points from their high yield for the day.