Foreign exchange information for North America buying and selling on Sept 17, 2021:
- Gold down $1 to $1752
- US 10-year yields up 4.3 bps to 1.376%
- WTI crude oil down 59-cents to $72.01
- USD leads, CAD lags
Coming into New York commerce the market temper was pretty impartial. There have been some considerations about China/Evergrande however the strikes in FX had been small.
Nevertheless as soon as once more the fairness tail was wagging the canine. After a flat begin, US equities slumped had on the open for the eighth time up to now 10 buying and selling days. The dip patrons tried to step in on the European shut however after a fledgling rally there was one other spherical of promoting.
With the dip in equities got here a broad bid within the US greenback, even towards CHF and JPY. It wasn’t precisely a threat off commerce in bonds both as charges pushed near the Sept/Aug highs earlier than stalling.
The Canadian greenback was hit on falling power costs and the temper in equities, together with some considerations about Monday’s Canadian election. USD/CAD reduce by 1.2700 simply to interrupt the weekly excessive then cruised as much as 1.2760.
It was quadruple witching on Friday and one factor that argues that flows had been chargeable for value motion is the outperformance of AUD and NZD versus CAD. If Evergrande was actually a driver, you’ll count on to see that antipodeans struggling extra, particularly the way in which that iron ore is buying and selling.
Cable completed poorly on Thursday and Friday after hitting a one-month excessive early within the week. The promoting was regular however did not kick off till effectively into New York commerce. It is on observe to complete on the lows of the day as effectively. The Sept low of 1.3726 is now a hiccup away.
The chart I am most thinking about for the time being is USD/CHF. Regardless of the temper at this time, it prolonged the breakout above the June highs to one of the best ranges since April. Many pairs are caught in ranges however this one is making a transfer. There have been indicators of SNB intervention not too long ago however that is a part of a broader USD transfer. Might the market be sniffing out a shock taper announcement?
Have a fantastic weekend.