FX Update: The Canadian Dollar dove after Saudi Arabia expelled
FX Update: The Canadian Dollar dove after Saudi Arabia expelled Canada's ambassador and froze all trade and investment with Canada. The was a response to Canada's support of detained human rights activists. USD-CAD jumped by nearly 30 pips in the early phase of trading in the Asia-Pacific region, posting a high of 1.3019, before the move ran out of steam. Elsewhere, the Dollar remained generally firm in the wake of Friday's U.S. jobs report, where a disappointing headline was burnished by firmer underlying components. EUR-USD edged out a fresh six-week low of 1.1551. Cable remained heavy, under 1.3000, but has so far remained above its Friday low at 1.2975. USD-JPY has been trading without direction, holding near 111.30, above Friday's low at 111.10. The 10-year JGB yield ebbed back under 0.1%, which follows the BoJ making clear last week through its actions that it won't be a one-way street to its newly installed 0.2% upper yield limit. Concerns about the Sino-U.S. trade war again weighed on Chinese stock markets, while Japanese shares also headed south in a mixed session in Asia generally. Beijing said today that President Trump's "extortion" won't work in what many pundits have said is an unusually personal attack. The offshore Yuan traded slightly higher, holding firmer after the PBoC on Friday announced a reserve requirement of 20% on financial institutions settling foreign exchange forward dollar sales to clients, effective from today.