Forex news for Americas trading on September 25, 2019.
- US stocks end with decent gains as impeachment and trade fears ease
- Fed's Bullard on CNBC: I think it would have been better for the Fed to have done 50 bps
- Trump/Zelenskiy press conference. Does not want to be involved in US election
- Japan, US ministers confirmed no automobile export quota will be imposed
- More Brexit debate from Corbyn this time: PM Johnson is not fit to be PM
- ECB's Lautenschlaeger resigns from central bank
- USTR Lighthizer: Car are not included in this agreement. It is Japans ambition
- UK PM Johnson: Government is trying to deliver on Brexit
- US sells 5-year nohim and wastes at 1.600% vs 1.590% WI bid
- If you like Bitcoin, this is the area to buy
- European equity close: France leads the way lower
- NY Fed increases size of overnight and 14-day repos
- Trump says trade deal with China could happen sooner than you think
- Fed's Evans says he's 'open minded' about a cut but says at moment current setting is ok
- Pres. Trump pushed Ukraine to work with Giuliani, Barr on Biden's son, but Justice dept says nothing wrong
- US new home sales for August 713K vs 658K estimate
- Oil falls below $56 as Saudi output restored
- Fed's Evans: Economy is quite solid, unemployment still low
- US imposes sanctions on Chinese entities for knowingly buying oil from Iran
- Today's overnight repo operation was oversubscribed again
- The USD is the strongest and the GBP is the weakest as NA traders enter for the day
In other markets:
- Gold tends to go in the opposite direction of the US dollar. With the dollar running higher, the price of gold ran to the downside. The low for the day reach down to $1500.45. The current price is trading at the $1504.50 or $-27.29 or -1.78%. The high was up at $1535.32 near the start of the trading day
- WTI crude oil futures are down $-0.75 or -1.31% at $56.54. The Saudi output was restored after the drone strike. The weekly Department of Energy crude oil inventories also showed a bigger than expected build of 2412K vs expectations for a draw of-600K
- The price of bitcoin on Coinbase
The markets today reversed the sentiment of yesterday. At this time 24 hours ago, the markets were awash in impeachment fear and the dollar was more under pressure (as was the stock market and bond yields).
The Speaker the House Pelosi did in fact launch and impeachment inquiry on the President. However, the markets seemed to be a little less fearful that they would go very far.
Not only is getting the necessary votes especially in the Senate where the GOP has the majority, but the Justice Department did cast some doubt by concluding that Trump did not violate campaign finance laws after reviewing the transcript of the call with the Zelenskiy. The transcript was released and the President did bring up the Biden situation, but there was enough potential ambiguity as to whether he bullied Zelenskiy into action, in return for aid.
Later in the US session, Pres. Trump and Ukraine's Zelenskiy held a a joint press conference from the sidelines of the UN General Assembly meeting. Zelenskiy said that he did want to be involved in the US Election and that he had a "normal call" with the President and "nobody pushed" him.
Other positives for the USDs run higher today came from
- Better new home data (the sales pace remains toward the high end)
- Pres. Trump said that a trade deal with China could happen sooner than you think, and added that they are making big purchases of agriculture, pork, beef.
- The US and Japan announced a limited trade pact
- Brexit concerns in the UK sent the pound tumbling and the dollar soaring. The GBPUSD is trading up 1.06% on the day and is the biggest mover of the day.Below is a snapshot of the strongest and weakest of the major currencies.
- Yields moved higher and helped to push the dollar higher. The rise can be attributed to less fear and better data. In contrast to the 2 year auction yesterday that saw the high yield come in 1 bp LOWER than the WI level on flight to safety buying, today's 5 year auction saw the high yield 1 bp ABOVE the WI level at the time of the auction and the bid to cover lower as well.
- Higher stocks helped to propell the dollar higher as well. The NASDAQ index rose by 1.05%. The S&P index and down industrial average rose by around 0.62%
