Forex news for North American trade on February 11, 2020:
- Highlights from Chair Powell: Expects to continue T-bill purchases into the 2nd quarter
- Text release from Fed Powell: Policy likely appropriate barring material reassessment
- More Powell testimony highlights: No reason why expansion cannot continue
- Fed's Kashkari: Interest rates are slightly accommodative, not providing much boost
- Fed's Bullard: Expect progress this year on returning to 2% inflation
- ECB's Lane says central bank closely monitoring impact of negative rates
- BOE Haskel (dove): He continues to prefer to move now on rates
- Pres. Trump says Fed rate is too high, dollar tough on exports
- ECB's Schnabel: ECB's current monetary policy stance is necessary
- US JOLTS job openings 6.423M versus 6.925M estimate
- China Global Times: Coronavirus outbreak is still at very difficult moment
- ECB Lagarde: Monetary policy can't be only game in town
Markets:
- Gold down $4 to $1568
- WTI crude oil up 45-cents to $50.00
- US 10-year yields up 2.2 bps to 1.59%
- S&P 500 up 6 points to 3357
- AUD leads, JPY lags
The pound gained in a modest relief rally today and risk trades did a bit better but overall moves were limited to a couple-dozen pips.
Risk trades rallied on Powell's early comments but slipped back later and USD/JPY followed the same path before finishing the day unchanged.
AUD/USD tried to put some space above 0.6700 but was pulled back with a big option rolling off there on Wednesday. The kiwi also tried to break higher but was quickly pulled back ahead of the RBNZ decision.
The euro cracked below 1.0900 in a run on stops but there was no appetite to push it lower and it recovered on bids ahead of the Sept low of 1.0879.
