investingLive Americas FX news wrap 10 Jul
- Canada June employment report shows +18.2K jobs vs +10K expected
- Baker Hughes total rig count +1 at 580
- Fed report to Congress sees 'stepped up’ inflation in the spring
- Canada building permits for May -1.7% versus 2.4% estimate
- Only one thing has driven FX markets this year – Deutche Bank
Markets:
- Gold down $9 to $4112
- WTI crude oil down 51-cents to $71.57
- US 10-year yields up 2 bps to 4.56%
- JPY leads, EUR lags
- S&P 500 up 0.4%
- Nasdaq up 0.3%
- Russell 2000 down 0.5%
It was another strong day in the stock market as the SK Hylix US debut led to some positive commetnary on chip demand, with the company saying the peak will be in 2027 but demand will remain high through 2030. Meta was also a big winner, up 6%, on yesterday’s release of a new model and some positive commentary from CEO Zuckerberg about data center economics.
The Canadian dollar got a brief lift from a solid employment report but after falling to 1.4120, USD/CAD rebounded to 1.4157 on broad USD strength.
Despite the dollar strength, gold bounced late in the session and finished down just $9.
Oil bounced around on conflicting headlines about the Iran war but there will be a meeting between the US, Iran and mediators on the weekend as they look to get talks back on track. Refining cracks are getting increasing attention as Russian capacity continues to be hit by Ukraine and Hormuz activity remains light. There is still a strong underlying sense in the market that Trump won’t do anything to derail the stock market rally.
Elsewhere in FX, USD/JPY fell 65 pips and by a peak of more than a full cent. Increasing indication of desperation and a strong hand against yen weakness are finally weighing but it’s looking to be a tough battle. Even on the modest weakness today, there were solid bids in two tests of 161.25.
Have a great weekend.
This article was written by flc97fe4880a4b454993821fe0b770a597 at investinglive.com.