Forex news for North American trading on October 13, 2020:
- US September CPI +1.4% y/y vs +1.4% expected
- IMF sees 2020 world GDP shrinking -4.4% vs. -5.2% estimate in June
- Eli Lilly COVID antibody trial paused due to potential safety concerns - report
- Dutch PM: Coffee shops, bars and restaurants to close due to coronavirus
- McConnell: We will try one more time on stimulus pre-election
- BOE's Bailey: We need to consider negative interest rates
- Bailey: UK economy at end Q3 about 9-10% below end of 2019
- Sen Maj Leader McConnell: Senate will vote on targeted coronavirus relief bill
- Cristiano Ronaldo tests positive for coronavirus
- Brexit: PM tells cabinet he still believes there is a deal to be done
- Pelosi says Trump's latest offer on stimulus falls significantly short
- JPMorgan outlines uncertainty in loan losses
- OPEC says September output fell 50K bpd
Markets:
- Gold down $28 to $1894
- US 10-year yields down 4.5 bps to 0.73%
- WTI crude oil up 78-cents to $40.22
- S&P 500 down 22 points to 3511
- NZD leads, GBP lags
A strong bid for the US dollar hit right across the board on Tuesday as risk trades faded. There wasn't a particular catalyst for the move as the newsflow was nothing surprising. Stimulus talks remain a mirage and Presidential polls are showing more of the same. The CPI report was in-line with expectations. Some pauses in COVID treatments certainly didn't help.
On Brexit, a French minister said in parliament that no deal was more likely and there are increasing calls for a nation-wide lockdown. It was the worst day for cable in three months as it fell 1%.
The commodity currency picture was more mixed with NZD shaking off the US worries, the loonie falling but buffeted by higher oil prices. AUD was the laggard on China coal export worries.
Gold was beaten up in a reversal of the recent gains to back below $1900. That selling didn't start until New York arrived.
