NY Open: Markets cautious on hurricane, headline risk NY Open: Markets cautious on hurricane, headline risk NY Open: Markets cautious on hurricane, headline risk

NY Open: Markets cautious on hurricane, headline risk

MO
Michael O’Neill

FX Trader, Loonieviews.net

Markets of all stripes are trading with a cautious bias this morning. Some of the concern stems from Hurricane Florence, a Category 4 storm that is heading for either South Carolina or North Carolina and is expected to arrive on Thursday. It could achieve Category 5 status by then. 

That’s not the only storm threat. President Trump has yet to react to news that China is seeking permission from the World Trade Organization to impose sanctions on the US over Washington’s non-compliance to a WTO ruling from a 2013 complaint. The President has previously threatened to withdraw from the WTO, and this could be the catalyst.

Canadian and US trade officials are back at the negotiating table in Washington. The US wants a less restrictive dispute resolution and access to Canada’s dairy industry. Canada is opposed to both demands. USDCAD is rangebound while the trade talks drag on. This morning’s August housing starts data didn’t help, as they dropped 2.3% compared to the July result.

Wall Street is spinning its wheels. The DJIA, S&P 500, and Nasdaq are a tinge in the red compared to yesterday’s closing levels. The mood is sombre as it is the 17th anniversary of 9/11 and the 10-year anniversary of the Lehman Brothers collapse.

The US dollar has inched higher in New York trading led by a rise in USDJPY which climbed from 111.13 at the open to 111.53 at 14:00 GMT. Higher US Treasury yields and better than expected JOLTS data supported the gains. Job openings rose to 6,939,000 in July, a record high. 

Sterling is still the poster child for volatility. GBPUSD dropped to 1.2965 and then popped to 1.3040 when Irish Prime Minister Leo Varadkar said a Brexit deal could be done in two weeks. He didn’t say how and GBPUSD settled at 1.3010.
GBPUSD, Brexit uncertainty highlighted
GBPUSD (five-minute, Brexit volatility circled in green, source: Saxo Bank)

Disclaimer

The Saxo Bank Group entities each provide execution-only service and access to Analysis permitting a person to view and/or use content available on or via the website. This content is not intended to and does not change or expand on the execution-only service. Such access and use are at all times subject to (i) The Terms of Use; (ii) Full Disclaimer; (iii) The Risk Warning; (iv) the Rules of Engagement and (v) Notices applying to Saxo News & Research and/or its content in addition (where relevant) to the terms governing the use of hyperlinks on the website of a member of the Saxo Bank Group by which access to Saxo News & Research is gained. Such content is therefore provided as no more than information. In particular no advice is intended to be provided or to be relied on as provided nor endorsed by any Saxo Bank Group entity; nor is it to be construed as solicitation or an incentive provided to subscribe for or sell or purchase any financial instrument. All trading or investments you make must be pursuant to your own unprompted and informed self-directed decision. As such no Saxo Bank Group entity will have or be liable for any losses that you may sustain as a result of any investment decision made in reliance on information which is available on Saxo News & Research or as a result of the use of the Saxo News & Research. Orders given and trades effected are deemed intended to be given or effected for the account of the customer with the Saxo Bank Group entity operating in the jurisdiction in which the customer resides and/or with whom the customer opened and maintains his/her trading account. Saxo News & Research does not contain (and should not be construed as containing) financial, investment, tax or trading advice or advice of any sort offered, recommended or endorsed by Saxo Bank Group and should not be construed as a record of our trading prices, or as an offer, incentive or solicitation for the subscription, sale or purchase in any financial instrument. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, would be considered as a marketing communication under relevant laws.

Please read our disclaimers:
Notification on Non-Independent Investment Research (https://www.home.saxo/legal/niird/notification)
Full disclaimer (https://www.home.saxo/legal/disclaimer/saxo-disclaimer)
Full disclaimer (https://www.home.saxo/legal/saxoselect-disclaimer/disclaimer)

Saxo Bank A/S (Headquarters)
Philip Heymans Alle 15
2900
Hellerup
Denmark

Contact Saxo

Select region

International
International

Trade responsibly
All trading carries risk. Read more. To help you understand the risks involved we have put together a series of Key Information Documents (KIDs) highlighting the risks and rewards related to each product. Read more

This website can be accessed worldwide however the information on the website is related to Saxo Bank A/S and is not specific to any entity of Saxo Bank Group. All clients will directly engage with Saxo Bank A/S and all client agreements will be entered into with Saxo Bank A/S and thus governed by Danish Law.

Apple and the Apple logo are trademarks of Apple Inc, registered in the US and other countries and regions. App Store is a service mark of Apple Inc. Google Play and the Google Play logo are trademarks of Google LLC.