ForexLive Americas FX news wrap: Cable and Commodity FX sink on risk aversion
Forex news for New York trade on September 8, 2020:
- China set to raise the stakes in US sanctions battle with Taiwan move - repot
- Scholz: Recovery measures are the start of a fiscal union
- US July consumer credit outstanding +$12.25B vs +$12.9B expected
- US sells 3-year notes at 0.170% vs 0.166% WI
- Pelosi: Latest GOP stimulus proposal is 'meager' and insults American people
- S&P 500 down 95 points to 3331
- Gold down $4 to $1929
- WTI crude oil down $2.88 to $36.89
- US 10-year yields down 3.6 bps to 0.682%
- JPY leads, GBP lags
If you're looking for a headline behind the moves, it's going to be a struggle. Risk aversion didn't appear yesterday in Europe or early today but appeared midway through European trade and ramped up as New York arrived.
It was a continuation of the reversal in sentiment that started late last week, especially around tech stocks. Tesla was down 21% in a record one-day fall while the index extended the drop from last Wednesday to 10%.
The only real news-driven move was in cable where Boris Johnson's government is floating the idea of flouting international law. The new Oct 15 deadline also spooked the market. Bids held 1.30 for most of the day but it gave out late with 1.2985 as the new low. That's just above the Aug low.
USD/CAD also soared as oil prices slumped on signs of waning demand. The Saudi price cut combined with a flattening in the recovery and a technical break lower stung oil. USD/CAD has now formed a base above 1.30 and tomorrow's BOC decision could be pivotal.