Forexlive Americas FX news wrap: US dollar rebounds, Daly highlights Fed put

• Fed’s Daly: Labour market is in complete balance
• Fed’s Barkin: I’m hearing that consumers are still spending but they’re choosing
• US July durable goods orders +9.9% vs +5.7% expected
• US Dallas Fed manufacturing index -9.7 vs -17.5 prior
• Canada to impose 100% tariff on China EVs; will also tax Chinese steel and aluminum
• Canada to slash the number of temp foreign workers. Trudeau hints at immigration revamp
• Apple announces iPhone event for September 9. Here’s the bull case from Dan Loeb
• Goldman Sachs: Scope for further GBP gains, maintain long GBP/CHF position targeting 1.16
• Deutsche Bank: Fed’s Powell opens door to aggressive easing, closing EUR/USD short
• Atlanta Fed GDPNow unchanged at 2.0%

Markets:

• WTI crude up $2.22 to $77.05
• US 10-year yields up 1.1 bps to 3.81%
• Gold up $8 to $2518
• S&P 500 down 0.3%
• CAD leads, NZD lags

The market took back some Friday’s post-Powell moves in an orderly retracement that was more back-and-fill than a response to fundamentals. Daly backed up Powell’s comments and highlighted how the FOMC doesn’t want to see any further weakening in the jobs market, which certainly looks like a Fed put. She also neglected to mention any kind of gradual easing, leaving 50 bps on the table.

The durable goods report headline was strong but the details were weak, so it balanced out. Otherwise, only oil was the real mover on a Libyan shutdown and that helped to push CAD to the top of the pile.

Equity markets were higher in the pre-market but there is angst building ahead of Nvidia’s earnings report and the nearly 10% move implied in the options market. That might keep things locked in for now.

This article was written by Adam Button at www.forexlive.com.