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Trump’s refusal to green light a temporary funding solution kept the possibility of a partial government shutdown in play, adding to the dollar’s woes.

It didn’t help that another leg lower for U.S. equities fueled talks of a bear market and a recession. Then U.S. Defense Secretary Mattis’ resignation added salt to the market’s wounds. Ouch!

  • Canadian ADP non-farm employment up 39.1K vs. 1.8K previous
  • Canada’s wholesale sales increased 1.0% vs. 0.4% forecast, -0.7% previous
  • Philly Fed manufacturing index down from 12.9 to 9.4 vs. 15.1 consensus
  • U.S. CB leading index up 0.2% vs. projected flat reading
  • Japanese national core CPI down from 1.0% to 0.9%
  • House Speaker Ryan says Trump refuses to sign temporary funding solution
  • U.S. Defense Secretary Mattis resigns on differences with Trump

Major Events/Reports:

Another down day for equities

After a bit of a reprieve in the previous U.S. session, equity indices spent another day in the red as uncertainty loomed over the markets.

  • Dow 30 index is down 464.06 points to 22,859.60 (-1.99%)
  • S&P 500 index is down 39.54 points to 2,467.42 (-1.58%)
  • Nasdaq is down 108.42 points to 6,528.41 (-1.63%)

A huge (or more like YUUUGE) part of this is being pinned on the POTUS’ refusal to sign a stop gap funding solution that could prevent a partial U.S. government shutdown from happening. And his point of contention? Yep, you guessed it: his border wall.

Another likely factor for the selloff was the German court ruling against Apple which bans the company from selling certain iPhone units in the country. This involves its beef with Qualcomm and a whole lot of fuss about patent infringement, similar to an earlier case in China.

Major Market Mover(s):

USD

The Greenback already got beaten up in the previous trading session and barely got a chance to defend itself for the rest of the day. It did manage to stop the bleeding against the commodity currencies which caved to risk-off flows.

USD/JPY sank further to 110.81; USD/CHF slipped from .9939 to .9841; EUR/USD popped up to 1.1485; GBP/USD is up to 1.2671, and AUD/USD held on to .7115.

JPY

The yen was the main beneficiary of risk-off flows for the session as it took advantage of troubles in the U.S. as well.

EUR/JPY sank from 128.24 to 127.35; GBP/JPY fell from 141.85 to 140.78; AUD/JPY slipped from 79.80 to 79.01; NZD/JPY tumbled to 75.34, and CAD/JPY is down to 81.93.

CAD

The Loonie found itself behind the pack, bogged down by overall risk aversion and more declines in crude oil prices.

EUR/CAD is up from 1.5429 to 1.5463; GBP/CAD popped up to 1.7102; AUD/CAD is holding its head above the .9600 handle, and NZD/CAD is up to .9152.