ForexLive Americans FX news wrap: US dollar sags despite rebound in yields | Forexlive
Markets:
- Gold up $2 to $1788
- US 10-year yields up 8 bps to 3.49%
- WTI crude oil down 48-cents to $71.52
- S&P 500 up 30 points to 3963
- AUD leads, JPY lags
The dollar was steadily sold early in North American trade on Friday as the market shows increasing concerns about the health of the economy. However that wasn’t a uniform driver on Monday as stocks and Treasury yields rose.
Instead there was steady US dollar selling for several hours in what could be flows or repositioning. Commodity currencies led the move with the second day of gains for AUD/USD.
The euro was slow to participate but eventually joined in and is on track for the highest close since June.
USD/CAD fell on what was initially a jump in oil prices on the shutdown of the Keystone pipeline due to a leak but even as oil reversed the loonie held onto gains. The BOC’s Kozicki certainly didn’t rule out further hikes and that could have kept the bid alive in the loonie as well.
USD/JPY was slightly higher in what was likely a nod to higher yields. It’s the third day of largely-sideways trading in the pair as it takes a breather after the big fall from 150.00.