Foreign exchange information for North American commerce on January 25, 2018:
Gold up $22to $1303WTI crude up 45-cents to $53.58US 10-year yields up three bps to 2.75%S&P 500 up 21 factors to 2663NZD leads, USD lags on the day
The US authorities shutdown deal gave USD/JPY a short raise to 109.90 from 109.60 however it will definitely gave all of it again and the pair is close to the lows of the day at 109.48.
The larger story on the day was heavy promoting within the US greenback. I have not seen a compelling rationalization for the rip within the gold however here is the chatter:
The shutdown deal is just three weeks and there is pessimism on an enduring dealRoger Stone’s arrest brings the Mueller probe nearer to the White HouseA WSJ report concerning the Fed retaining a much bigger steadiness sheet is dovishThe PBOC Friday introduced an additional 250 billion yuan in lending availabilityRisk urge for food boosting demand for commodities and commodity FXFlows into GBP from USD on higher Brexit sentiment
What’s notable is that the US greenback is ending on the lows of the day and (on quite a lot of fronts) the lows of the week. Cable gained practically 150 pips on the day to 1.3212 because it took out the October excessive. The Oct excessive of 1.3258 is the subsequent one to look at.
NZD/USD edged above the January excessive late within the day to a one-month excessive in a powerful 1.2% acquire.
USD/CAD was notably onerous hit partly because of oil settlement flows. The pair had made stable positive factors earlier within the week but it surely was all worn out in a 130 pip drop decrease. Oil was a minor assist but it surely was principally concerning the weak US greenback.
EUR/USD shook off a mushy IFO report in a surge to an 11-day excessive of 1.1414. Yeterday’s drop to help at 1.1280 was clearly rejected in a complete reversal that bodes properly for the euro.
Gold additionally ripped greater and completed with an additional flourish in an increase to $1303, bringing it above the $1275-1300 consolidation zone the place it has been hanging out for the previous two weeks. With Chinese language new 12 months coming, the consumers lastly arrived.