Forex news for September 16, 2019:
- WTI settles at $62.90 for fourth-largest gain on record
- Trump: It is looking like Iran was responsible for attacks on Saudi Arabia
- Saudi Arabia has already brought 40% of production back on line and rest could be back by month-end
- Iran's Rouhani says attack was a reciprocal response to aggression against Yemen
- Global currency trading volumes surge to highest-ever level
- Johnson: The Irish border backstop needs to go from the treaty
- US tells Saudi Arabia that oil attacks launched by Iran - DJ
- Houthi rebels in Yemen threaten new attacks - spokesman
- Canada August existing home sales +1.4% vs +1.3% expected
- Johnson says EU agreed that Brexit talks must intensify
- US Sept Empire Fed manufacturing index +2.0 vs +4.0 expected
- UK supreme court to hear case on prorogation on Sept 19
- Juncker: Brexit talks with Johnson were good
- ECB's Lane: Convergence of inflation towards aim has recently slowed, partly reversed
Markets:
- WTI crude oil currently up $6.88 to $61.76
- Gold up $11 to $1499
- US 10-year yields down 5.6 bps to 1.84%
- CAD leads, EUR lags
- S&P 500 down 10 points to 2997
The story today was all about oil. Crude spikes at the weekly open but it was a slow grind lower from there and into European trading. Crude fell to $59.00 from a high of $63.34. Howver it picked up steam again in US trading on some sabre rattling and out-piped the highs by four cents before retreating back to $62.06 late. The 14.5% rally into the close pegged it as the fourth-largest one-day gain ever.
In FX, there was some chatter about dollar-funding challenges and that was one explanation for the slide in EUR/USD down to 1.1000 from 1.1075. General dollar demand in negative fallout from oil also hurt the euro.
Cable was soft after the failure to make any kind of breakthrough in EU-UK talks. Boris Johnson skipped the press conference because of protests and the only news was the both sides agreed to accelerate plans and talks. Cable finished down three-quarters of a cent in a generally choppy slide.
The Canadian dollar was caught between higher oil and risk aversion. That led to a somewhat disappointing slip of 40 pips in USD/CAD. The loonie bulls would have hoped for more.
For NZD, the pain was more acute as the pair slid 40 pips in a slow steady fashion to 0.6343 in a the fourth day of declines. Chinese data was poor early in the day and higher oil prices surely don't help New Zealand or its Asian trading partners.
USD/JPY finished the day at the highs as it finally closed the opening gap. That could be a reflection of dollar-funding demand, Fed positioning or improving risk appetite. The pair finishes the day flat after falling more than 60 pips at the open.
More to come:
