ForexLive Americas FX news wrap: Bombs away

Author: Adam Button | Category: News

Forex news for US trading on April 13, 2017:

Markets:

  • AUD leads, CAD lags
  • Gold up $1 to $1287
  • WTI crude down 25-cents to $52.87
  • US 10-year yields flat at 2.23%
  • S&P 500 down 16 points to 2329

The general theme was US dollar strength but it was a slow, steady move and big parts of it came before New York showed up for work.

After the big move above 1.06 to 1.0675 yesterday, EUR/USD sank back to 1.0610 today in a slow move that's finishing close to the lows. The worst level was 1.0609 then it bounced 20 pips but selling late is causing a fresh challenge on the lows, watch out for small stops.

USD/JPY rose as high as 109.42 in early US trading in a retracement of Wednesday's fall but risk aversion crept into stocks late and the bomb might have rattled a few nerves.

But should the bomb really matter? The US and Russia have had bombs that size for +15 years so it's nothing new. The signal is that Trump might be getting a bit trigger happy. To be truthful, he seems like the kind of guy who would enjoy flexing his muscles once he got the hang of it and that's two groundbreaking strikes in a week. But two points don't make a trendline so I don't think the worries will last.

Cable was another pair that reversed Wednesday's sharp move higher with a slow grind lower. From 1.2525 at the start of US trading, it finished at the lows just under 1.2500.

USD/CAD was a better mover as it also retraced Wednesday's move. Oil was a touch lower but not enough to justify the 100 pip rise in North American trade. Could it be worries about Canadian housing? I'm not sure but I think it should be.

AUD and NZD also finished at the US lows but they made some healthy headway in Asia so it was a small amount to give back.

Eamonn is out for the holiday today so expect it to be quiet around here for the next few hours. Here's more on the ForexLive holiday schedule.