Forexlive Americas FX news wrap 12 Aug: Geopolitics has the markets on edge.

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Forexlive Americas FX news wrap 12 Aug: Geopolitics has the markets on edge.

• US stocks close mixed.  Dow down. S&P unchanged. Nasdaq higher.
• Crude oil futures settle at $80.06, up $3.22 or 4.19%
• US federal budget deficit for July -$244.00 billion versus -$242.00 billion estimate
• US yields are trading lower (at new lows for the day)
• Crude trade above $79. Highest level since July 19
• Latest election poll: Harris 47.6% vs Trump 47.1%
• Geopolitics: US State Department believes that a cease-fire agreement is still possible
• Fox is reporting: Iran could attack Israel in less than 24 hours
• NY Fed survey of its inflation expectations: 1 year 3%. 3 year 2.3% lowest since 2013
• Commodities are utterly hated right now
• Kickstart the FX trading day for Aug.12 w/a technical look at the EURUSD, USDJPY & GBPUSD.
• Canada July building permits -13.9% vs +6.6% expected
• The AUD is the strongest and the JPY is the weakest as the NA session begins
• ForexLive European FX news wrap: USD/JPY nudges up amid calmer markets to start the week
• OPEC slashes 2024 oil demand growth forecast on softer China outlook

Monday's trading saw the NZD as the strongest of the major currencies and the JPY as the weakest.  The USD is ending the day with mixed results with gains vs the JPY and CAD, and declines vs the AUD and NZD. The green back was little changed vs the EUR, GBP, CHF and CAD.

A NY consumer survery showed inflation expectations remain steady one year in 5-year out, but the 3-year -0.6% to an survey all-time low (going back to 2013) of 2.3%. It was quirky, but the results did help to support stocks and give treasuries a boost.

Yields have moved down by 3.0 - 4.5 basis points across the curve.

The other news event centered on expectations that Iran and Hezbollah would retaliate against Israel for the killing  of a top Hezbollah official late last month, and hours later killing Ismail Haniyeh, Hamas's political leader and the face of the group in cease-fire negotiations with Israel. Israel was blamed by Iran and they and vowed revenge.

Oil prices were supported moving above the $80 level briefly before commingled the bid. The current price is trading at $79.60.

That news may also help to boost treasury prices on plate the safety flows.

US stocks were not particularly impacted by the geopolitical tensions

At the end of the day, the Dow Industrial Average average fell by -0.36%. The S&P index was near unchanged, and the NASDAQ index rose by 0.21%.

US PPI data will be released tomorrow at 8:30 AM. CPI data will be released on Wednesday and retail sales on Thursday.

                This article was written by Greg Michalowski at www.forexlive.com.

Source: Forexlive Americas FX news wrap 12 Aug: Geopolitics has the markets on edge.

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