Forex news for North American trading on September 13, 2021
- Dow and S&P snap five day decline. NASDAQ down for the fourth straight day
- US CPI will be released tomorrow at 8:30 AM ET
- Oil climbs 1%. Why Bank of America thinks it could hit $100 on cold weather
- US August budget deficit $171B vs $173B expected
- Litecoin creator attributes tweeting about Walmart deal to 'over-excitedness'
- European indices end the day with gains across the board
- The shortage in US natural gas is worse than it looks
- NY Fed survey on consumer inflation expectations hits series high
- Is the Walmart release about Litecoin fake? Yes it is.
- Walmart intends to allow shoppers to make payments with Litecoin (update: This was one of the all-time great cons)
- It's tough to see how Europe can avoid an energy crisis this winter
- 3M warns on the impact of inflation and global chip shortage
- OPEC forecasts global oil demand will exceed pre-pandemic levels in 2022
- The CAD is the strongest and the CHF is the weakest as NA traders enter for the day
- ForexLive European FX news wrap: Dollar pulls ahead, equities look to recover
The North American session started with the CAD as the strongest of the majors as crude oil prices moved back above the $70 level and chatter about higher prices through the winter The pair supported. The CHF was the weakest.
As the day comes to a close those two currencies remain as the strongest and weakest. The USD which was higher earlier in the day, get back some of the gains and is closing near unchanged levels verse the EUR, GBP, JPY and NZD. The greenback is higher verse the CHF, lower verse the CAD and modestly lower verse the AUD as well.
The US dollar moved higher in early trading, but later declined as stocks weakened and US interest rates remained lower. There was little in the way of economic data although inflation concerns remain an issue. A New York Fed survey on consumer inflation expectations hit an all-time high in the series. Also OPEC forecasted global oil demand will exceed pre-pandemic levels in 2022.
PS Bank of America is out saying that they could see $100 a barrel.
PSS. The US CPI data will be released tomorrow at 8:30 AM with expectations of 0.4% for the headline number and 0.3% for the core measure
Although higher inflation could be viewed as bullish for rates and the dollar, it also can lead to a lower dollar as the economy slows.
Overall, the change of the US dollar from day-to-day was little changed
Looking at the US stock market, it had its share of up and down trading especially in the NASDAQ index.
After all the major indices open higher, the NASDAQ startedto lose steam and reversed course into negative territory. The index fell as much as -84.6 points or -0.56% at it's session low before closing down just -9.9 points or -0.07% at 15105.60. The NASDAQ index is now down for four consecutive days.
The S&P index also moved from positive - earlier in the day - to negative intraday and into the New York afternoon. It traded as high as 34.41 points and as low as -12.88 points.
By the end of the day however, the S&P index closed up 10.15 points or 0.23%. That snapped a five day losing streak for the broad index.
The Dow industrial average fared much better today as UnitedHealth (+2.63%), Intel (+2.14%), Boeing (+1.99%), and Chevron (+1.98%) led the Dow 30 higher. Only six of the 30 Dow stocks were lower on the day. The Dow industrial average also snapped a five day losing streak, with a gain of 261.91 points or 0.76% at 34869.64
In the debt market, the yields were lower at the start of the day and are ending the day lower as well with the yield curve flattening. The 10 year yield fell by -1.5 basis point. The 30 year bond fell the most by -2.8 basis points. The 2– 10 year spread narrowed by about 1.3 basis. Recall from last week, the demand from foreign investors was very strong especially in the 10 and 30 year sectors. That buying seem to have continued in early trading this week
in other markets:
- Spot gold is trading up $5.74 or 0.32% at $1793.33. That is near mid range with a low of $1784, and a high of $1799.
- Spot silver is trading near unchanged at $23.74. That is near it's high of $23.85. The low extended to $23.38
- WTI crude oil futures are trading up near one dollar at $70.70. The high reached the $70.97 on expectations for increased demand.
The price of bitcoin had a wild ride today as the market reacted to a tweet from Litecoin that Walmart would accept Litecoin. That tweet was deleted with Litecoin officials say they got a little "over excited". That is not good one the SEC is looking closely at crypto.
The price of bitcoin is trading down $1075 at $44,955.59.
