Forex news for New York trade on January 6, 2020:
- Protestors take over the Senate chamber. Shots fired
- Trump orders National Guard to Capitol
- Pence: I have no unilateral authority over election outcome
- Schumer: $2000 checks will be one of the first orders of business
- UK virus cases rise to record 62,322 vs 60,916 yesterday
- US November factory orders +1.0% vs +0.7% expected
- BOE's Bailey: Markets were broadly expecting the Brexit trade deal we got
- Markit final Dec US services index 54.8 vs 55.2 expected
- US December ADP employment -123K vs +88K expected
- Germany December preliminary CPI -0.3% vs -0.2% y/y expected
- FOMC minutes: Some participants noted that the Committee could consider future adjustments to its asset purchases
Markets:
- Gold down $31 to $1918
- US 10-year yields up 8.2 bps to 1.04%
- S&P 500 up 21 points to 3748
- WTI crude up 61-cents to $50.54
- NZD leads, JPY lags
It was a day of twists and turns. The Democratic win led to a selloff in bonds that reverberated through the market. Initially equities didn't like it but then the move reversed in a big way. Later though, protestors stormed the US Capitol and shots were fired, leading to a confused trade but primarily towards safe havens.
There was also a strong bid in the US dollar into the London fix. that pushed USD/JPY to a session high of 103.40 before it fell back to the figure.
It's going to take awhile to sort through this mess.
