Forex news for US trading on Dec 8 , 2015:
- Bank of Canada lays the groundwork for negative rates
- US Oct JOLTS job openings 5383K vs 5500K expected
- November 2015 UK NIESR GDP estimate 0.6% vs 0.6% prior
- December 2015 US IBD/TIPP economic optimism index 47.2 vs 45.1 exp
- Australia considering hike VAT tax - leak
- Canada Oct building permits +9.1% vs +2.9% expected
- US EIA cuts forecast for 2015 world oil demand growth, sees less 2016 US production
- Buba's Weidmann didn't see ECB easing as necessary
- November 2015 Canadian housing starts 211.9k vs 200.0k exp
- WTI crude up 20 cents to $37.85 after falling as low as $36.64
- S&P 500 down 14 points to 2063
- US 10-year yields down 1 bps to 2.22%
- CHF leads, AUD lags
Oil and commodities were the big story early in the day. As US traders arrived, heavy selling in crude began. WTI was at $37.80 and quickly sank below $36 to the worst levels since 2009. Other commodities dropped as well. Not long afterwards, shorts began to cover and crude rebounded and squeezed up to $38.58. Eventually it sank back to where it started.
USD/CAD was dragged higher by oil and hit 1.3622 at the highs -- the best level since the crisis. It retraced and finished at 1.3582 but still up almost a cent on the day. The comments from Poloz didn't cause much immediate selling but they might be an indication of what's to come.
USD/JPY was under constant pressure as sentiment deteriorated early. The pair ran into offers ahead of 123.20 and then heavy selling took it down to 122.75 before finishing at 122.90. The trade followed the ebb and flow of stock markets.
Cable was in a bad way as it broke 1.50 again and ran stops until bids at 1.4950 halted the decline. The bounce was substantial as US trading finished slightly higher at 1.5010.
AUD/USD was caught in the commodity downdraft and worries about global growth. Base metals took another hit and that dropped AUD briefly below 0.7200 but in bounced back to finish at 0.7220.
NZD/USD was also under pressure but finished strongly at 0.6650 after testing 0.6600.
No theme really managed to grip the market and economic data wasn't a factor. It's getting to that time of year where sentiment and flows take over. Lots of eyes on China at the moment and the SNB is slowly coming into focus.
EUR/CHF tracked lower once again. It tried 1.0800 a few times and finally got through right at the end of the day in very low liquidity. There will be many eyes on that chart ahead of the SNB.