Forex news for North American trade on December 16, 2019:
- Markit US services PMI 52.2 vs 52.0 expected
- Canada November existing home sales +0.6% vs 0.0% prior
- November Empire Fed +3.5 vs +4.0 expected
- Trump: China trade deal translation will be finished in the coming weeks
- New Zealand Q4 Westpac consumer confidence 109.9 vs 103.1 prior
- Canada boosts deficit forecast, reiterates that personal income tax cut coming
- US NAHB housing market index 76 vs 70 expected
Markets:
- EUR leads, JPY lags
- S&P 500 up 23 points to 3192
- Gold flat at $1476
- US 10-year yields up 6 bps to 1.88%
- WTI crude oil up 17-cents to $60.24
USD/JPY held a bid early on higher Treasury yields and a positive start for risk assets. However the pair couldn't get above Friday's high of 109.71 and sagged back to 109.56. That will continue to be the level to watch in the day ahead.
Cable has gone surprisingly flat after the big election jump. The BOE is coming up later this week and that's a potential catalyst. Today US trader s took a look at the post-vote low of 1.3305 but held at 1.3320 before rebounding into narrowly positive territory at 1.3350.
USD/CAD was heavy in early trading as it slumped down to 1.3115 in an 8-hour long slump that kicked off early in Europe. Big bids at that level held and larger deficit numbers from the Federal government helped to turn the pair around in a rally to 1.3159, leaving the pair flat on the day.
AUD/USD was also quiet as it consolidated around 0.6890 but the late day moves were generally to the downside with the 200-day moving average continuing to cap gains.
