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Oil bounced around on Iran headlines

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Forex news for North American trade on May 18, 2021:


  • Gold up $2 to $1869
  • US 10-year yields flat at 1.64%
  • WTI crude oil down 61-cents to $68.85
  • S&P 500 down 24 points to 4138
  • CHF leads, USD lags

The newsflow was light and didn’t leave any ripples but there was a BBC report citing a Russian diplomat that briefly sent WTI crude down to $64.12 from $65.90. It ended up recovering to $65.50 in part because the diplomat walked it back but that adds some intrigue to the days ahead when an Iran deal could be sealed.

CAD followed oil but to a lesser extent. The loonie had hit a six-year high earlier in the day but ended up finishing flat on the day, which was a disappointment given broad USD weakness.

The dollar selling was done in Europe and Asia and it was mostly flat in New York. Starting into the session there was all kinds of talk about a dollar breakdown but instead it was stocks that were heavy.

The euro finished near the highs of the day up 75-pips to 1.2227 which is a few pips from breaking the Feb spike high and that would put it a cent away from the highs of the year. The ECB isn’t offering anything on rates and Villeroy was unequivocal today but Europe is vaccinating quickly now and the market likes that reopening bump.

Cable also had a strong day for the same reasons, finishing just 60 pips from the February high. The BOE commentary was a non-mover but the comments saying that negative rates aren’t anywhere close to consideration right now highlights the improved backdrop.

Overall, there were good-size moves across markets for a day with not much newsflow. Also, keep an eye on bitcoin as it tests the lows from yesterday. Eventually, if you keep on knocking, they let you in.

Forex news for North American trade on May 18, 2021:

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