Americas FX news wrap There was no structured narrative on Friday as trading began in a “sell-all” mode before bonds rose again. However, it was tough for stocks, bonds and equities. In this environment, you would expect to see a stronger US dollar but that was not the case as the euro and Australian dollar remained steady. Forex Mony
Gold falls $4 to $2,562
US 10-year Treasury yield rises 2bp to 4.44%
WTI crude oil falls $1.71 to $66.99
S&P 500 down 1.3%
JPY advances, GBP lags
Americas FX news wrap
The retail sales report was the headline event the day before, it was better than the headline appeared due to a strong revision to September. However, some argue that the negative revision to August has canceled this out. However, there is little discussion going on around the US consumer at the moment, with most claiming that spending will be healthy and could get a boost after the election.
The big move in the FX market was in USD/JPY. There was some talk of intervention earlier and stronger verbal intervention. I doubt that was the reason but there was some real selling as about half of the week’s gains were erased in a 200 pip drop. The Fed has become less accommodative which should help but the bond market may be smelling some economic weakness or there may be concerns about tariffs and deficits.
Sterling is down for a sixth day, which is good news for me as I will be in London next week. The pair broke the August low and continued to fall to 1.2600, a level that is close to the June low in a tough ride.
The Canadian dollar has been struggling alongside the pound, falling to a four-year low, which meant USD/CAD rose to 1.4105 at the peak of the day. Another drop in oil prices helped the move.
There are growing concerns about China and equities, with China being among the laggards globally this week. This is a problem for the Australians, but they got rid of these concerns on Friday and ended the week on a stable note.
Have a great weekend, and if you are in London, I will be at FMAS 2024 next week.
