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ForexLive Americas FX news wrap: Fed minutes shrugged off

Forex news for Americas trading on Aug 21, 2019:

Markets:

  • S&P 500 up 24 poitns to 2924
  • WTI crude down 23-cenmts to $55.89
  • US 10-year yields up 3.2 bps to 1.58%
  • Gold down $5 to $1502
  • CAD leads, CHF lags

The day got underway with Canadian CPI data and it was hotter than expected, sending USD/CAD quickly down to 1.3256 from 1.3290. It stalled there in part due to support from lows on Monday and Friday. A second attempt also failed then the pair began to creep higher as oil prices reversed lower, in part due to a build in distillates in the EIA report.

The Fed minutes were practically a non-event in terms of market moves initially. EUR/USD and AUD/USD slipped 10-15 pips but immediately bounced back. Later, the market started to take the approach that rate cuts are less likely and front end yields rose, helping to lift the US dollar late.

USD/JPY finishes the day near the highs, up 38 pips to 106.63. It sagged to 106.38 early in US trading but took out the Asia high of 106.60 late.

Cable skidded lower on Brexit talk from France and the failure to accomplish anything in the Merkel-Johnson meeting but the fall was minor and bids at 1.2100/10 picked up the pair for a rebound to 1.2150 before USD strength sent it back to 1.2125.

The euro was stable for most of the day until USD demand late sent it 15 pips lower to 1.1085. It remains within a 60-pip range this week.

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