Forex today: on the more cautionary side following Hong Kong's sell-off, dollar down

Ross J Burland FXStreet

Forex today was on the more cautionary side on the back of investors backing away from Wall Street with a correction in the US benchmarks, following on from the sudden sell-off in Hong Kong.

US yields and the DXY were on the back foot, with the 10yr treasury yields dropping from 2.34% to 2.30% before closing around 2.33%. The 2yr yields also fell and from 1.56% to 1.53% and closed back at 1.55%. The greenback closed lower by -0.2%.

As far as data goes, US jobless claims dropped to a 44-year low, to 222k vs 240k expected. Also, the Philadelphia Fed’s business survey rose from 23.8 to 27.9 vs 22.0 expected. Elsewhere, while the market tracks the odds for the who will be the next Fed chair, Fed's Powell holds onto a large lead on the betting sites - Yellen/Warsh/Taylor all around the same odds.

As far as the currencies go, the EUR rose from 1.1800 to 1.1858. GBP/USD was hit on the on UK Retail Sales miss, down to 1.3132 the low from 1.3229. USD/JPY fell from 113.13 to 112.30 on a flight to safe havens. AUD rose further to 0.7884, following the solid jobs data and RBA expectations. The NZD/USD was smashed after the new government was announced, (NZ First will join the Labour Party, with support from the Green Party), down to 0.7009 from 0.7171 and copper was offered after the action in Chinese markets.

There are no scheduled key events in Asia:

Key notes from US session:

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

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