Forex news for NY trading on June 11, 2018
- US stocks limp into the close but end with small gains
- Bitcoin suffers from hack over the weekend. Stabilizes at lower levels.
- Kim Jong Un sets a deadline for ending summit
- US crude oil futures settle at $66.10
- Merkel: Clear Europe will take measures in response to US tariffs on metals
- IMF Lagarde weighs in on the G7. Clouds have become darker.
- US auctions $22B of 10 year notes at 2.962%
- European stocks led higher by the Italian FTSE MIB
- US auctions $32B of 3 year notes at 2.664%
- PM May: Was clear there was some debate and disagreement at G7
- Italy on the move. Stocks soar. Yields tumble.
- US issues more Russian sanctions related to cyber activity
- Germany's DIHK Association says Germany is feeling the pain trade disputes
- The EUR is the strongest while the CAD is the weakest as the NA session
In other markets, the end of day snapshot shows:
- Spot gold up $0.91 or 0.07% at $1300
- WTI crude oil is up $0.33 or 0.50% at $66.07
- Bitcoin on Coinbase is up $17 at $6732 (see post here).
- Stocks rose modestly. S&P up 0.11%. Nasdaq up 0.19%. Dow up 0.02%
- US yields are up modestly with a slightly flatter yield curve: 2 year 2.52%, up 2.2 bps. 5 year 2.795%, up 1.1 bp. 10 year 2.949%, up 0.4 bps. 30 year 3.0927%, up 0.3 bps
In the forex market today, the EUR was the strongest currency, while the JPY and the CAD are the weakest.
The markets in NY today, were little impacted by the weekend developments at the G7 meeting and quite frankly, the market's reaction in the Asian and London sessions helped the cause.
The Nikkei ended higher on the day. The European stock markets were also pushed higher. That gave US traders some solace and although the gains in the stock market were limited and yields in the US were somewhat steady, one has to think, given the rhetoric out of the G7, it could have been a lot worse.
In the forex market, yes... the Canadian dollar did come under pressure today after Trudeau said Canada said they will retaliate with their own tariffs, and both Trump (Trudeau is very "meek and mild"), and his team (Peter Navarro "There's a special place in hell for any foreign leader that engages in bad faith diplomacy with President Donald J. Trump") piled on the US's closest and most trusted ally.
All that makes a NAFTA deal (or bilateral deal for that matter) further away and contributed to the CAD's weakness.
Nevertheless, the USDCAD, after running to a high of 1.3027, is closing down at 1.2982 and spent most of the NY session below the 1.3000 level. It was still higher but not as bad as once thought.
The EU also said, they will also impose tariffs on select US goods as well (as per German Chancellor Angela Merkel). Yet the EURUSD is ending the day a little higher.
The GBPUSD was a loser today, but you can blame weak data in the London session for it's declines. IN the NY session the price corrected from a London morning session low of 1.3343 to a high of 1.3402, before backing back off toward the middle of those levels at 1.3379 (at the close).
The USDJPY was also supported today, helped technically by a move back above its 100 hour MA at 109.823 currently. In the NY session, that MA was tested, held and the pair is closing just above the 110.00 level. The JPY just beat out the GBP as the weakest currency of the day.
Overall, for the USD, it ends the day mostly higher with modest declines vs. the EUR, AUD and CHF and gains vs. the JPY, CAD, GBP and NZD.
So the G7 came and went and the markets weathered the storm.
The next potential storm lies ahead with the US/N. Korean summit. We will see how the markets react to that development in the new trading day.
