Wednesday , 6 November 2024
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Forexlive Americas FX news wrap: ECB cuts rates, US retail sales beat estimates

Markets:

  • Gold up $19 to $2692 in fresh record
  • WTI crude oil up 37-cents to $70.77
  • US 10-year yields up 8 bps to 4.10%
  • S&P 500 flat
  • AUD leads, JPY lags.

It was a lively day in terms of newsflow with the ECB decision as the main event. The euro fell after the rate cut on signs the central bank is behind the curve and oblivious to it. After falling to a two-month low of 1.0812, the euro stabilized later int the day and bounced 10 pips.

Much of the euro selling was the result of a broader US dollar bid due to strong retail sales and better-than-anticipated initial jobless claims. USD/JPY was a beneficiary as Treasury yields rose 4-9 bps across the curve and the pair broke through 150.00 and continued as high as 150.32, which is the best level since August 1.

Cable was stronger today but continues to range around 1.3000 following yesterday’s post-CPI drop.

USD/CAD ended a nine-day winning streak this week but returned to its winning ways today, up 50 pips despite good performance from the other commodity currencies and stronger oil. There is a growing sense that Canada is disconnecting from Australia after today’s sizzing Aussie jobs data.

In the metals market, gold marched to a fresh record, breaking the Sept 26 peak in the third day of gains. Higher yields and a stronger dollar were a headwind for gold but it’s likely benefiting from the growing disappointment in Chinese equities. Later we get Chinese GDP, retail sales, house price data and industrial production.

This article was written by Adam Button at www.forexlive.com.

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