• Gold down $18 to $1624
  • US 10-year yields up 18.5 bps to 3.88%
  • WTI crude oil down $1.90 to $76.84
  • S&P 500 down 29 points to 3662
  • USD leads, NZD lags

It was an historic day in the UK with an all-time low in the pound but also a volatile one. The puke early in Europe down to 1.0386 led to a bounce to 1.0500 and bids continued with talk of a BOE statement and short covering. At point point, GBP/USD was higher on the day but when the statement arrived, the selling resumed. It basically said the BOE isn't planning on an inter-meeting move and cable skidded to 1.0690 from 1.0850.

The also kicked off a fresh round of broad US dollar buying. EUR/USD slipped to 0.9600 after hitting 0.9688 in early New York trade. Both grided sideways in the US afternoon.

The bigger price action later in the day was in commodity currencies as they all blew out to new cycle lows. The loonie was particularly soft as oil reversed early gains. The rise to 1.3808 in USD/CAD was a two-year high and 200-pip gain at the peak. But in percentage terms the kiwi was the laggard.

Orr spoke late in the day (early in New Zealand) and said that the rate hiking cycle is almost done. He commented that 'demand will decline' which is almost controversial in today's central banking climate but was a breathe of fresh air. That comment didn't do much for NZD as the declines came earlier and are nearing the covid lows.

Looking ahead, the yen and prospect of intervention will be in play. USD/JPY climbed 130 pips on the day and as high as 144.78. The 145.00 level triggered the shift last time but note that JPY is still much stronger against all currencies ex-USD since.

FX news wrap Sept 26 d