Forexlive Americas FX news wrap: US dollar slumps as the trade war dust settles ...Middle East

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JOLTS job openings 7.600M vs 8.000M estimateUS December factory orders -0.9% vs -0.7% expectedDavid Sacks: The feasibility of a bitcoin reserve is being studiedTrump expected to sign executive order restoring 'maximum pressure' on IranTrump says his memo on Iran is "very tough", hopefully won't have to use itFed's Daly: The economy is in a very good placeWSJ: Pres Trump and China Pres. Xi are not speaking todayNew Zealand GDT Price Index +3.7%

Gold up $29 to fresh record at $2842S&P 500 up 0.7%WTI crude down 62-cents to $72.52US 10-year yields down 2.8 bps to 4.51%CAD leads, USD lags

The news flow on Tuesday was much slower than a day earlier but the market direction picked up from where we left off as stocks started flat and steadily gained. That was helped out by an intraday reversal in yields with 10s falling to 4.51% from 4.59%.

The moves were sizeable, led by another 100 pip decline in USD/CAD, taking the pair to 1.4323, which gets the pair back to January 23 levels. The year-to-date low of 1.4261 is the key support level from here.

Adding to the US selling was a soft JOLTS report that highlighted light pressure on wages in the US and may leave the Fed with room to cut rates if the economy underperforms.

Oil was bounced around on Iran tariff headlines competing with hopes for peace in Ukraine. I strongly suspect that Russia would want oil sanctions removed in any deal.

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

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