ForexLive Americans FX news wrap: Risk aversion reigns

Author: Adam Button | Category: News

Forex news for North American trade on February 7, 2018:


  • Gold up $4 to $1311
  • WTI crude down $1.34 to $52.66
  • US 10-year yields down 4.5 bps to 2.65%
  • S&P 500 down 35 points to 2697
  • GBP leads, CAD lags
Worries about US-China trade and global growth flared up, especially after talk began to circulate that Trump wouldn't be meeting with Xi. Kudlow also hinted that talks weren't going great. The pain hit stocks, oil and the Canadian dollar but other risk proxies like USD/JPY shrugged it off.

USD/CAD had its second big day of gains and was by far the biggest mover on the day, finishing up nearly a full cent. It cut through the 100-day but has been capped by the 55-dma and the late January high is a bit further up.

Cable also had a big swing. It slumped initially after the BOE and hit the lowest since Jan 22 at 1.2858 but shot back higher after Carney kept rate hikes on the table. To be honest, there wasn't anything worthy of a 150 pip turnaround but that's what we got until offers at 1.3000 capped the rally. There is some hope that Corbyn can force a compromise but the EU isn't doing May any favours. Last at 1.2958.

EUR/USD tracked higher in North American trade after hitting 1.1325 in Europe. It was a slow move up to 1.1350. USD/JPY was a similar story as it rose 25 pips despite risk aversion and falling yields.

The other commodity currencies held up better than CAD in North American trade but they were both beaten up badly over the past two days so you could argue it was the loonie playing catch up.
Forex news for North American trade on February 7, 2018:
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