• US 10-year yields down 1.7 bps to 3.91%
  • Gold down $17 to $2018
  • S&P 500 down 0.2%
  • WTI crude up 17-cents to $71.75
  • CAD leads, EUR lags

This market had all the hallmarks of one that was looking to retrace coming into New York trade. There had been a huge move since the FOMC and it was a Friday. Everyone was waiting for some kind of pushback from Williams on Powell's dovish comments. When he said "We aren't really talking about rate cuts right now" that was enough, even though the full context of that comment wasn't materially different from Powell, it was enough.

The dollar jumped and stocks gave back pre-market gains. The dollar gave back most of that move in the following hour but the S&P Global services data was also strong and that was enough to keep the bid alive, especially after another round of weak eurozone data.

EUR/USD finished the day down 97 pips on steady selling after touching 1.10 yesterday but failing to break the November high of 1.1017. Cable had been flat heading into NY trade but ultimately finished down 91 pips.

Elsewhere the dollar wasn't a strong as it gained a quarter-cent against the yen and traded choppy but eventually flat against the antipodeans. The Canadian dollar put in the top performance with the help of some hawkish comments from Macklem.

Have a great weekend.

FX news wrap Dec 15