Forexlive Americas FX news wrap: Initial jobless claims show employment market still solid | Forexlive

Markets:

• Gold up $3 to $1919
• US 10-year yields down 3.8 bps to 4.25%
• WTI crude oil down 72-cents to $86.82
• S&P 500 down 0.3%
• JPY leads, CAD lags

This week has featured a strong push-back on the idea of a slowing US economy. Yesterday’s ISM services number was strong and now today initial jobless claims. The dollar initially rallied but yields later came down as a strong bid in bunds appeared that led to a broader bid in Treasuries that pulled down USD/JPY, giving Japanese officials a breather.

Elsewhere the dollar was robust as global yields fell as some risk aversion crept in. EUR/USD fell 32 pips though it found bids on two trips to 1.0687 as the dip on the figure was brief. Cable followed a similar track as a dip to 1.2446 was short lived.

The Canadian dollar was an underperformer despite Macklem’s best efforts. He delivered a hawkish speech but the market isn’t believing in the case for more hikes with economic data slipping. In addition, oil finally came off the boil, breaking a streak of nine days of gain