Forex news for New York trade on October 30, 2019:
- S&P 500 up 10 points to 3046
- WTI crude down 65-cents to $54.89
- US 10-year yields down 6.5 bps to 1.77%
- Gold up $8 to $1495
- AUD leads, CAD lags
I’ll reuse my FOMC chart from earlier because it explains the story. The early comments were hawkish but then Powell said it would take a significant rise in inflation for them to even consider raising rates. So it’s flat or lower at the Powell Fed. That hurt the dollar and that’s the continuing trade now.
The Bank of Canada struck a surprisingly dovish tone earlier. Poloz said they talked about taking out an insurance rate cut — something the market wasn’t really considering. USD/CAD jumped initially and rose above 1.3200 before settling back to 1.3162 on broad USD selling. But against the rest of the field the loonie finished near the lows of the day.
Cable got a late lift from a report saying that the Brexit Party was considering pulling candidates in constituencies that would hurt Conservatives. That’s a big boost to Boris Johnson’s chances and — by extension — a smooth Brexit.
Oil was soft after a big inventory build in the US but natural gas rose sharply for the third day.