Forex news for North American trading on September 28, 2021:
- US Sept consumer confidence 109.3 vs 114.5 expected
- Richmond Fed manufacturing index -3 versus 12 estimate
- Fed's Powell: Repeats that they "have all but met" the test for tapering
- US August advance goods trade balance -87.6B vs -87.4B prior
- US wholesale inventories for August (P) 1.2% versus 0.8% estimate
- US July CaseShiller house price index +1.5% m/m vs +1.7% expected
- Fed's Bullard sees two rate hikes in 2022Fed's Bostic says he's confident that as economy heals, yield curve will steepen
- Blackrock expects near-term easing in China
- White House says looking at every means we have to address the cost of oil
- House progressive caucus says it will vote down infrastructure on Thursday without reconciliation
- Commerce Sec: Biden is willing to compromise on $3.5T reconciliation bill
- US treasury auctions off $62 billion a seven year notes at a high yield 1.332%
- Italy to hike 2021 GDP growth forecast to 6.0% vs 4.5% previously - report
- The betting odds for Brainard as the next Fed chair are rising
- ECB's Kazimir: We won't automatically boost APP when pandemic program ends
- BOE's Mann says signal from 5Y5Y inflation measures not troubling
- OPEC sees its own output below 2019 levels through 2026
Markets:
- Gold down $17 to $1732
- US 10-year yields up 6 bps to 1.544%
- S&P 500 down 90 points to 4352
- WTI crude oil down 68-cents to $74.76
- USD leads, GBP lags
The mood wasn't great when the US rolled in but it deteriorated significantly later, particularly has Treasury yields continued the march higher. US 30s moved up 9.6 bps to 2.09% to the highest since June.
That led to a big bid in the US dollar that helped to push cable through the August double bottom. That started a run on stops. The market has turned on GBP on energy shortages and the mess with gasoline. The low was 1.3521 and we're on track to close only 15 pips above that.
The euro did a better job of hanging with the US dollar but both made big moves against the rest of the field. Given the risk averse backdrop, you would expect to see more JPY and CHF strength but it didn't materialized.
Energy helped to cushion the fall for the loonie early but after brent and natural gas hit new highs they both pulled back considerably. That sent USD/CAD to 1.27 at the peak before backing off to 1.2675. AUD and NZD fell in Europe and never got off the mat.
