New York Forex Trading News August 28, 2020:
- Gold up to $ 35 to $ 1,964
- WTI flat gross at $ 42.97
- US 10-year yields down 3bp to 0.72%
- S&P 500 up 23 points to a record 3508
- NZD leads, USD late
Abe’s resignation from Japan resonated around the world and led to a surge in the yen’s strength with political uncertainty returning. The USD / JPY fell 25 pips initially on the news and continued 100 pips down for the rest of the day.
Much of this was the general sell-off of USD in the FOMC fallout. The dollar is affected by risky transactions and the concern of an accommodating Fed. He completed his breakthrough on most fronts on Friday.
Cable was particularly strong as it broke through August highs. Some fixing flows have added to demand for GBP ahead of a long weekend in the UK.
The euro was not as enthusiastic but moved higher end in a strong rally of 80 pips to 1.1900.
The Canadian dollar initially tried to break through alongside the Australian and New Zealand dollars, but was unable to complete the move. An initial drop to 1.3050 was increased steadily to 1.3125 before a late sell.
The aforementioned AUD and NZD both finished at day highs that are also post-pandemic highs in what looks like a major breakout.
Have a good week-end.