Forex news for North American trade on August 21, 2018:
- Wilbur Ross says US auto tariffs timetable may slip
- EU's Barnier: Negotiations have reached final stage. Will negotiate continually from now on
- New Zealand GDT dairy price auction -3.6%
- 3 new signs Trump is headed to a trade war with China
- Philly Fed Aug non-manufacturing index 41.7 vs 44.3 prior
- Canada June wholesale trade -0.8% vs +0.7% expected
- Wilbur Ross says US auto tariffs timetable may slip
- Reports say Cohen won't cooperate as part of plea deal
- IAEA sees no indication North Korea has stopped nuclear activities
- Manafort jury asks judge for guidance on inability to reach a consensus
Markets:
- Gold up $3 to $1193
- US 10-year yields up 2.5 bps to 2.84%
- WTI crude up 92-cents to $67.35
- S&P 500 up 8 points to 2865 after hitting all-time high of 2873
- GBP leads, JPY lags
It was an interesting day in financial markets. Positive sentiment was kicked off by the US appearing to back down on auto tariffs, at least temporarily. That boosted risk sentiment and eventually led to some US dollar selling and yen selling.
Separately, a press conference with Barnier and Raab boosted optimism on Brexit talks with a pledge toward continuous talks and working toward a deal in Oct/Nov. That gave a solid lift to the euro and sterling, which both gained around 100 pips on the day, even after a 30 pip dip late.
USD/JPY was steadily bid and hit 110.50 shortly after the European close in a steady climb from 109.75 in Asia.
Commodity currencies were strong, led by the Aussie and especially the kiwi, despite a poor dairy auction. The loonie was hindered by a poor wholesale sales report. I spoke to Reuters about the Canadian dollar.
