ForexLive Americas FX news wrap: Canadian dollar surges as BOC holds

Author: Adam Button | Category: News

Forex news for Americas trading on September 4, 2019:

Markets:
  • Gold up $7.50 to $1554
  • S&P 500 up 31 points to 2937
  • US 10-year yields flat at 1.46%
  • WTI crude oil up $2.42 to $56.36
  • Pound leads, yen lags
The US dollar was strong yesterday but it gave it all back today with the loonie and pound especially strong.

The Bank of Canada held rates unchanged and that was expected but the statement didn't offer any clear hints about a cut in October. That's 62% priced in but it doesn't sound like Poloz is eager to deliver. As a result, USD/CAD fell to 1.3280 from 1.3325 initially and then slid another 50 pips to the lows.

GBP/USD had its best day since May as part of a three-day reversal and part of yesterday's two-year low. The vote wasn't a surprise in parliament but the market has come around to the idea that a no-deal Brexit will not get through government, at least not in this iteration. It still has a long way to go to.

USD/JPY bucked the soft-dollar trend on an improving risk trade. US stocks are now back to the top of the range and the day and is going to be big. At the same time, yields didn't move higher today on a better risk trade and gold shook off early losses and touched fresh cycle highs. As for USD/JPY it rose 40 pips but is square in the center of the range.

AUD/USD was impressive again as it recovers from the August lows for a third time. It tracked all the way to 0.6801 and is finishing near the highs.

Forex news for Americas trading on September 4, 2019:
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