Forex news for North American trade on August 14, 2018:
- UK foreign secretary says risk of a no-deal Brexit has been increasing
- Bitcoin hits the skids but trades above and below $6000 (and the 2018 lows).
- Turkish fin min: Turkey to remain within free market rules
- US import prices unchanged as expected. Export prices down -0.5% vs +0.2% expected
- Canada July Teranet house price index +1.8% vs +2.9% y/y prior
- UK foreign secretary says risk of a no-deal Brexit has been increasing
Markets:
- Gold up $1 to $1194
- Turkish lira up 8% to $6.36
- S&P 500 up 18 points to 2840
- WTI crude oil down 2-cents to $67.17
- US 10-year yields up 1.5 bps to 2.89%
- CAD leads, EUR lags
It was a quiet day on the economic calendar but market moves were brisk. The main theme was US dollar buying and not in a risk-aversion kind of way. It was across-the-board bids in the dollar that helped to lift it against everything except the sizzling loonie.
EUR/USD was flat around 1.1400 as New York arrived but soon started a long slide down to 1.1340 and finished the day on the lows.
In the UK, Brexit news continues to weigh and a brief rally above 1.2800 on data was wiped out in a slide to 1.2715.
EUR/CHF was also in focus as it fell to the lowest in more than a year at 1.1287. It seems like just yesterday that it was back up above 1.20 but it's now fallen 300 pips in the past week.
USD/JPY was lifted to 111.20 from 111.00 at the start of North American trade. The stock market held a steady bid and Treasury yields rose.
The strength in the Canadian dollar wasn't easy to explain. Oil was higher early but those gains faded and risk appetite didn't give anything else a lift. The NAFTA front was generally quiet but the Mexican peso was also strong. Canadian fin min Morneau said he was cautiously optimistic late on Monday.
Thanks so much for being with us for the past 10 years. Can't wait to see what happens between now and our 20th anniversary on Aug 14, 2028.
