Forex news for North American trade on August 8, 2019:
- Trump says he is not thrilled with strong dollar
- Italy's Salvini says it's necessary to hold fresh elections
- China Global Times editor: Pro-US thoughts being tested
- Trump says he is not thrilled with strong dollar
- US June wholesale trade sales -0.3% vs +0.2% prior
- Germany considers U-turn on fiscal stance with new debt to fight climate change -report
- Canada June new housing price index -0.1% m/m vs 0.0% expected
- US initial jobless claims 209K versus 215K estimate
Markets:
- Gold up $2 to $1503
- US 10-year yields down 1 bps to 1.54%
- S&P 500 up 52 points to 2935
- WTI crude oil up $1.70 to $52.80
- AUD leads, EUR lags
Stocks roared back as the yuan showed some stabilization and the dip-buyers overwhelmed the bears but elsewhere there was much more skepticism. The huge rally in stocks was met with a 25 pip dip in USD/JPY and lower Treasury yields after an early rally. Gold also erased losses to finish slightly higher.
There was also a shift to individual country news as Italian election speculation hurt the euro at various times. That was balanced by talk of the German government finally opening the purse strings.
In the UK, Brexit worries are tough to shake. Cable slumped early in North America to hit 1.2095 before grinding back to flat at 1.2140.
The commodity currencies put in a strong day. The half-cent rally in the Australian dollar was the first real gain in more than two weeks.
USD/CAD was under pressure as oil rebounded, in part due to a 'whatever it takes' comment from Saudi Arabia. The pair was at 1.3300 at the start of Toronto trade and fell 80 pips on the day.
