ForexLive Americas FX news wrap: Oil climbs again
Forex news for North American trading on April 8, 2019:
- US factory orders for February -0.5% versus -0.5% expectations
- Canada February building permits -5.7% vs +2.0% expected
- Canada March housing starts 192.5K vs 194.0K expected
- UK House of Lords approves legislation to avoid no-deal Brexit
- Corbyn: Government doesn't seem to be moving from its original Red Lines
- May's spokesman: We want agreement with Labour as soon as possible
- EU's Barnier: We are ready to make political declaration clearer
- BOC's Wilkins: Digitization should be positive for productivity
- Tory Brexiteers attempting to organise indicative vote of no confidence in Theresa May
- Gold up $6 to $1298
- WTI crude up $1.37 to $64.45
- S&P 500 up 3 to 2896
- US 10-year yields up 2.5 bps to 2.52%
- CAD leads, USD lags
Oil and a climb in the euro were the story in markets to start the week. Crude rose further above the 200-day moving average and WTI broke the 61.8% retracement of the Q4 rout to hit the best levels since October.
The rally in oil was a tailwind for the loonie as USD/CAD was knocked down to 1.3312 from 1.3380 at the start of North American trade. The drop came despite the disappointing read on Canadian building permits, which was largely ignored. Watch support in the 1.3295 zone if oil can hold or extend gains.
EUR/USD grabbed a bid at the start of European trade and sustained it through the fix in a steady rise to 1.1270 from 1.1225. Options might have been part of the story but the pair is now consolidating just below. There's a big short position in the euro but with the eurozone calendar quiet in the day ahead, there's no catalyst for a further break.
Cable was locked in a 1.3030-1.3075 range but is on track to finish near the top end. Brexit headlines are having a declining effect with just about everyone sick of trying to guess what's coming next.
AUD/USD posted a solid day with a rally to 0.7130 from 0.7100 at the start of North American trade. The larger factor was general US dollar weakness. It's starting to look like the safe-haven flows into the dollar are reversing on broad global signs of stabilization.