Major indices just above or below the unchanged level. After opening lower, the Maj. US indices have recovered and trade near unchanged levels. The USDJPY is trading back near session highs although price action is up and down today. The pair is testing the 38.2% of the move down from yesterday’s fall (moving above the…
Big reversal in USD/CHF USD/CHF fell to the lowest since September earlier today only to completely reverse to a two day high. A close here would trace out an outside day in the pair.
It’s not exactly like he’s embraced in the Davos crowd He has 10 days until Davos but decided either 1) the shutdown isn’t going to end, or 2) that he wanted to get the word out early to avoid all the prep that goes into a Presidential trip.
Off high levels on the comment The Q&A was zipping along as per the January 4th comments until he Powell started talking about the Fed balance sheet. Although he did say where it ends is unknown, he did say that the balance sheet will be substantially smaller than it is now.
Bid to cover ratio 2.19 times vs 2.31 times at last auction The Bid to cover is light at the lower yield. The WI just before the auction was trading at 3.024%. So the tail was over 1 bp (also an indication of weakish demand).
Bystanders try to find a way to play both sides The WSJ looks at the opportunities for some countries at the fringes of the trade war. It’s clear that some winners are in China’s neighbourhood as countries shift production to Vietnam and Cambodia.
Moves closer to the “Red Box” The European traders are getting set to head home, and they area pushing the EURUSD to new session lows before exiting.
USD/CAD turns lower after earlier rise The Canadian dollar is suddenly sizzling. A rebound in oil prices, better risk sentiment, oversold conditions and broad US dollar weakness have led to an impressive rebound in the loonie.
Germany’s central bank comments to Bloomberg in response to the industrial production drop earlier in the day – Looking through volatility of monthly economic data ForexLive
News from earlier: White House confirms Nellie Liang withdraws from Federal Reserve nomination The news seemed to precipitate a fall in yen crosses. I ma not sure I want to attribute the falls so emphatically to the news but the timing was right.