FX News Today
FX Update: The Dollar has traded firmer overall, although it has continued to hold steady in a narrow range against the Yen. USDCAD dropped to its lowest level since June 6, at 1.2887, driven by reports that Canada is ready to make significant concessions on diary to secure a trade deal with the US. This is potentially good news as it raises the chances for Congress to approve the White House agreement with Mexico in the context of a revamped NAFTA deal. Elsewhere, EURUSD extended yesterday’s correction from the four-week peak at 1.1733, posting a 1.1674 low. AUDUSD fell to a two-day low at 0.7308, and Cable has seen a two-day low at 1.2854, with the Pound so far unaffected by news reports that the UK and the EU are likely to further push the deadline for a Brexit agreement to mid-November rather than October’s EU summit. USDJPY, in contrast to other Dollar pairs, has posted less than a 20 pip range so far in the Tokyo trading, defined by 111.13 and 111.31, which continues a phase of tight consolidative price action into a fourth consecutive session. EURJPY and other Yen crosses, meanwhile, have declined moderately. PBoC set the USDCNH reference at 6.8072, fractionally up on yesterday’s 6.8052.
Asian Market Wrap: 10-year Treasury yields are down -0.9 bp at 2.871%, pulling back from highs slightly over 2.85% yesterday. JGB yields are still up 0.1 bp at 0.089%, , but also off earlier highs. Wall Street closed with marginal gains yesterday after the US500 pulled back from record highs over the 2900 mark, with Topix and Nikkei up 0.40% and 0.13% respectively amid optimism over U.S. growth after an improvement in consumer sentiment. Mainland China bourses are in the red, however, with investors remaining cautious despite reports that Canada is willing to make considerable concessions to secure a trade deal amid ongoing concerns over China-US trade prospects. As treasury yields are approaching 2.9% rate-sensitive shares start to feel the pressure. The Hang Seng moved sideways, while CSI 300 and Shanghai Comp are down -0.47% and -0.33% respectively. US futures are moving higher, though while oil prices are down.
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