Forex headlines for North American trading on March 29, 2018:
- Gold flat at $1324
- S&P 500 up 36 points to 2640
- WTI crude up 54-cents to 64.92
- US 10-year yield down 5 bps to 2.73% — a 7-week low
- JPY leads, GBP lags
The FX market decided three days this week was plenty of drama. Stock, bond and commodity markets were bouncing around but the forex market was largely lame.
There was no particular theme with the yen and commodity currencies gaining and the US dollar mostly soft. The pound was particularly weak, perhaps on some profit taking at the end of a good month for GBP. Cable started US trading at 1.4060 and fell as low as 1.4011 before a late 10 pip bounce.
EUR/USD also tried the downside and broke the European low of 1.2300 but could only spark a squeeze to 1.2284 with the bottom coming in the European close. It’s a four-day weekend for Europe so it’s going to be quiet for awhile. The close will be right around 1.2300.
USD/CAD fell hard into the London fix in a quick move down to 1.2860 from 1.2910 but within 45 minutes it had bounced right back. A second wave of selling hit later in a slide to 1.2880.
The other commodity currencies were also strong with AUD/USD battling up to 0.7676 and NZD/USD in a slow 30-pip gain to 0.7230.
USD/JPY slipped into the London fix and again the London close but stock market sentiment turned and that gave it a bit of a lift up to 106.45 at the close. The range was far narrower than the 150 pips on Wednesday.