Canadian dollar shrugs off strong jobs report

  


Forex news for North American trade on July 10, 2020:

Markets:

  • Gold down $4 to $1799
  • WTI crude up 86-cents to $40.49
  • US 10-year yields up 2 bps to 0.6348%
  • S&P 500 up 33 points to 3184
  • JPY leads, AUD lags

The tone was negative overall and with a US dollar bid heading into New York trade but the virus headlines are all a bit better today, starting with the Gilead news. The holiday skew is over and testing was higher in most states but the numbers didn’t take a big jump and the % positive was down in Florida and Arizona.

The tone slowly improved throughout the day and (for once) it wasn’t a rally driven purely by the Nasdaq momentum names. Instead it was financials driving the bus.

In FX, the Canadian dollar shrugged off the strong jobs number but traded in a generally-restrained manner as it ranged between 1.3575 and a 10-day high of 1.3625.

Cable kept the momentum going through the London close but stalled out at 1.2663 and then backtracked to 1.2624 to finish the day. I noted the remarkable popularity of Sunak’s runaway fiscal spending and it certainly isn’t hurting sterling at the moment.

Elsewhere the FX moves were modest. I hate to even mutter the words ‘summer doldrums’, especially in a year like this, but it felt like that today.

FX news wrap



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