NY Open: Wall Street wobbles on trade NY Open: Wall Street wobbles on trade NY Open: Wall Street wobbles on trade

NY Open: Wall Street wobbles on trade

Michael O’Neill

FX Trader, Loonieviews.net

Wall Street is wobbling on the first trading day of September although the three main indices are well above their August lows. Nike shares (NKE: NYSE) dipped because some investors fear negative fall-out after Nike injected itself into the NFL anthem controversy. Facebook (FE: NASDAQ) shed 3.4% as of 13:45 GMT an analyst downgraded the company to neutral from buy, blaming a deceleration in growth and regulatory scrutiny for the decision.

WTI oil prices surged to $71.377barrel overnight due to news that Gulf of Mexico rigs were evacuated because of soon-to-be Hurricane George. However, a report that Saudi Arabia increased oil production in August has driven prices to $70.53/b in New York.

A better-than-expected US ISM Manufacturing PMI data for August (Actual 61.3 versus forecast 57.7) underpinned an already firming US dollar. GBPUSD is virtually unchanged from its opening level. It was the biggest losing G-10 currency between the New York close on Friday and this morning’s open, so perhaps GBPUSD sellers just needed a break. 

Bank of England governor Mark Carney’s testimony before the House of Commons saw him try to walk back his comments from last month where he said that the UK’s biggest risk was from a “no-deal” Brexit. He said he believed that it was unlikely to happen.

USDCAD soared, and it is trading at the overnight and session peak of 1.32065 as of 1400 GMT after the Nafta talks deadline passed without a deal, on Friday.

President Trump tweeted on Saturday: “There is no political necessity to keep Canada in the new NAFTA deal. If we don’t make a fair deal for the U.S. after decades of abuse, Canada will be out. Congress should not interfere w/ these negotiations, or I will simply terminate NAFTA entirely & we will be far better off...

He continued with “....Remember, NAFTA was one of the WORST Trade Deals ever made. The U.S. lost thousands of businesses and millions of jobs. We were far better off before NAFTA - should never have been signed. Even the Vat Tax was not accounted for. We make new deal or go back to pre-NAFTA!

The Bank of Canada policy meeting is tomorrow. Last week’s mildly softer-than-expected GDP report and the lack of a US/Canada trade deal will ensure that rates don’t rise tomorrow.


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

Contact Saxo

Select region


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.