Forexlive Americas FX news wrap: Home builder sentiment worsens. USD choppy on flows

• US NAHB housing market index 31 vs 34 expected
• Canada November producer price index -0.4% vs -0.4% expected
• Canadian home prices fell 1.3% in November - Teranet
• EU nations agree to natural gas price cap - Czech Presidency
• Goldman Sachs reiterates forecast for Fed funds to peak at 5.00-5.25%
• EU energy commissioner: Filling gas storage next year will be harder than this year
• Binance to buy US assets of Voyager Digital out of bankruptcy, initially sold to FTX
• US House committee refers Trump to DOJ for prosecution

Markets:

• CHF leads, NZD lags
• WTI crude oil up $1.34 to $75.63
• S&P 500 down 34 points to 3817
• Gold down $5 to $1787
• US 10-year yields up 11 bps to 3.59%

There's a visible shift in markets as we stumble towards year end. Economic data and events are less of a factor and flows dominate. There was a large bid for the US dollar US Dollar The US dollar, (symbol $, code USD) is the fiat currency of the United States of America (USD) and the most widely traded currency globally. It was introduced into the US in the late 18th Century, with paper notes not being distributed until the following century. The US dollar, also informally known as the greenback, is the world’s most foremost reserve currency, due in large part to the importance of the US economy on the world stage. Once backed by gold (in the 1900’s), the USD is now a purel The US dollar, (symbol $, code USD) is the fiat currency of the United States of America (USD) and the most widely traded currency globally. It was introduced into the US in the late 18th Century, with paper notes not being distributed until the following century. The US dollar, also informally known as the greenback, is the world’s most foremost reserve currency, due in large part to the importance of the US economy on the world stage. Once backed by gold (in the 1900’s), the USD is now a purel Read this Term into the London fix and it entirely reversed in the following hour. That was the main trading point of the day and underscores what's to come.

Another driver was the stock market Stock Market A stock or equity market is defined as the aggregation of buyers and sellers of stocks, which reflect ownership claims on businesses.These may also include securities listed on a public stock exchange, as well as stock that is only traded privately. Common examples of this include shares of private companies that are sold to investors through equity crowdfunding platforms.Unlike the past, the stock market has grown to include a more mature retail market, though nearly all investment is still don A stock or equity market is defined as the aggregation of buyers and sellers of stocks, which reflect ownership claims on businesses.These may also include securities listed on a public stock exchange, as well as stock that is only traded privately. Common examples of this include shares of private companies that are sold to investors through equity crowdfunding platforms.Unlike the past, the stock market has grown to include a more mature retail market, though nearly all investment is still don Read this Term. Coming into the trading day, futures were flat but tech began to stumble early and continued to struggle, with the Nasdaq down 1.4% on the day. A number of megacap stocks are at or approaching new lows in a big concern for the market. I strongly suspect that tax loss selling is now at work and coming later than usual. My belief is that many market participants were waiting for Powell to throw a lifeline and instead he tossed a hand grenade.

The selling in equities was tolerated sell by the FX market but the rise in yields was noticeable in the bid in USD/JPY. Some of that was also the reversal of an earlier drop on talk of a BOJ mandate review. The market has evidently concluded that's not coming but yen risks remain high.

The loonie benefited from a boost in oil prices as the market tries to see through the initial pain of China's reopening and digests Friday's announced SPR purchases. There's a growing sense than $70 is the bottom for oil prices, though that could certainly be tested in a tough recession.