Forex news for North American trade on November 21, 2019:
- BOC's Poloz says he thinks monetary conditions are 'about right'
- November Philly Fed +10.4 vs +6.0 expected
- Canada ADP October employment -22.6K vs +28.2K prior
- US initial jobless claims 227K versus 218K estimate
- ECB: Strong call for unity was made at October meeting
- Trump considers new trade investigation to justify tariffs on EU
- A high-profile signing ceremony of Hong Kong bill would anger China - report
- US leading index for October at -0.1% versus -0.2% estimate
- Eurozone November advance consumer confidence -7.2 vs -7.3 expected
- US October existing home sales 5.46m vs 5.49m expected
- Risk trades boosted by report saying that even if there's no trade deal, Dec 15 tariffs will be delayed
Markets:
- Gold down $7 to $1464
- US 10-year yields up 2.5 bps to 1.77%
- WTI crude oil up $1.45 to $58.47
- S&P 500 down 6 points to 3104
- CAD leads, AUD lags
The euro and pound were at the highs of the day as New York rolled in but the theme from there was to sell the pair in a broad US dollar rally. There wasn't a particular reason for the dollar bid but it dragged the euro down to 1.1057 from 1.1097. The pound slid to 1.2905 from 1.2970. Both are looking to wrap up the day near the lows.
The big fundamental mover was the Canadian dollar after Poloz's comments. The market had begun to priced in a 25% chance of a rate cut in December but he poured cold water on that idea, saying that rates were about right. That sent USD/CAD down to 1.3270 from 1.3320 beforehand. The rally in oil is tailwind for the loonie but was less of a factor today than Poloz.
The loonie's commodity cousins didn't get any love as they were swept lower in the dollar rally. AUD/USD is near the November low of 0.6770 in the second day of losses. The kiwi touched the highest since Nov 3 earlier in the day but is finishing lower on the day near 0.6400.
Yen crosses were pulled around by trade headlines. The early report saying the US may delay Dec 15 tariffs if there is no deal helped USD/JPY but it was fleeting and negativity crept back in. The pair spent the day in the 108.50 to 108.70 range.
