ForexLive Americas FX news wrap: Markets get high on tax talk

Author: Adam Button | Category: News

Forex news for US trading on April 20, 2017

Markets:

  • Gold up $1 to $1281
  • WTI crude down 17-cents to $50.27
  • S&P 500 up 18 points to 2356
  • US 10-year yields up 2 bps to 2.23%
  • AUD leads, JPY lags

It was a roundtrip for the euro. Polls showing some momentum for Macron helped EUR/USD up to 1.0777 in early European trade but it later made a double-top there and the US dollar caught a bid on more talk of tax cuts from the White House. The top led to selling all the way down to 1.0717, which was nearly flat on the day.

USD/JPY caught a big bid right at 9 am in New York as it jumped to 109.40 from 109.00. It was either a run on stops with a few big levels in between or it was an early leak of the Kuroda comments. The move faded in 30 minutes but fresh highs came when the Kuroda comments hit. The pair made two more highs after that over the next four hours but only by a couple pips each time and is now consolidating around 109.30.

Cable inched over the early European high of 1.2842 but could push further and slipped back to 1.2817. But it's impressively holding nearly all the gains from the bust higher on the election call and that looks like a consolidation before another push.

USD/CAD touched 1.3500 but was quickly beaten back from the big figure down to 1.3460. The rumours about Canadian housing were proven true as Ontario introduced measures to cool the Toronto market. Flat oil trading generally kept a lid on the trade.

AUD/USD hit a fresh high of 0.7547 just ahead of the London close but was dragged back to 0.7525 on the dollar bid on the tax comments.

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