Forex news for North American trading on October 5, 2018:
- WTI crude oil up 1-cents to $74.36
- Gold up $4 to $1204
- US 10-year yields up 4.3 bps to 3.23%
- S&P 500 down 16 points to 2885
- GBP leads, NZD lags
The anticipation on Friday was that it would be all about non-farm payrolls and the Canadian jobs report but markets weren’t cooperative. The US report was soft on the headlines but that was balanced by upward revisions. Wages were a tad soft but the unemployment rate fell.
At first the US dollar jumped 20 pips, then it gave back the moves and started on a long decline. One again bonds and stocks were bigger movers with yields continuing to push higher and China fears also hitting equities.
In the UK, a report saying the EU is about to offer a trade deal was positive and that added to momentum the pound already had. Cable finished up 90 pips and will close out the week higher after a poor start.
The commodity currencies remain deeply unloved. AUD/USD broke to fresh lows since 2016 and will close near the lows at 0.7050. NZD/USD dropped another 37 pipis to 0.6442.
Despite the NAFTA deal, USD/CAD will finish the week slightly higher at 1.2945 as risk aversion, flows and trade fears intensify.
The euro finished flat and is showing some resilience as Italy remains a headwind.