Forexlive Americas FX news wrap: USD/JPY gives some back

<ul><li><a href="https://www.forexlive.com/news/canada-cpi-inflation-for-november-yoy-31-versus-29-estimate-20231219/">Canada CPI inflation for November YoY 3.1% versus 2.9% estimate</a></li><li><a href="https://www.forexlive.com/news/us-housing-starts-for-november-1560m-vs-1360m-estimate-best-since-may-20231219/">US housing starts for November 1.560M vs 1.360M estimate. Best since May.</a></li><li><a href="https://www.forexlive.com/centralbank/richmond-fed-pres-barkin-inflation-remains-a-focus-for-the-fed-20231219/">Richmond Fed Pres Barkin: Inflation remains a focus for the Fed</a></li><li><a href="https://www.forexlive.com/centralbank/rbnz-gov-orr-inflation-remains-to-high-20231219/">RBNZ Gov. Orr: Inflation remains to high.</a></li><li><a href="https://www.forexlive.com/centralbank/feds-bostic-still-a-ways-to-go-on-inflation-even-though-fed-has-made-tremendous-progress-20231219/">Fed's Bostic: Still a ways to go on inflation even though Fed has made tremendous progress</a></li><li><a href="https://www.forexlive.com/centralbank/bostic-there-is-not-going-to-be-urgency-for-fed-to-back-away-from-restrictive-stance-20231219/">Bostic: There "is not going to be urgency" for Fed to back away from restrictive stance</a></li><li><a href="https://www.forexlive.com/centralbank/atlanta-fed-gdpnow-growth-estimate-for-q4-rises-to-27-20231219/">Atlanta Fed GDPNow growth estimate for Q4 rises to 2.7%</a></li><li><a href="https://www.forexlive.com/news/canada-industrial-product-prices-04-versus-06-estimate-20231219/">Canada industrial product prices MoM for November -0.4% versus -0.6% estimate</a></li><li><a href="https://www.forexlive.com/centralbank/boes-breeden-important-for-policy-to-be-restrictive-for-an-extended-period-20231219/">BOE's Breeden: Important for policy to be restrictive for an extended period</a></li></ul><p>Markets:</p><ul><li>Gold up $13 to $2039</li><li>WTI crude oil up $1.11 to $73.44</li><li>US 10-year yields down 2.3 bps to 3.93%</li><li>S&amp;P 500 up 0.5% to 4817</li><li>AUD leads, JPY lags</li></ul><p>USD/JPY ran into sellers just below 145.00 in the squeeze higher after the BOJ held rates unchanged and didn't offer any hints about a move soon. That was after a confusing series of messages in the lead-up to the decision. The 250 pip move higher stalled and then started to give back some ground just as North American traders arrived and that continued into the European close in a decline to 143.50.</p><p>That pair fell even as the USD was weakening elsewhere. The euro took another look at 1.10 while cable rose briefly above 1.2750.</p><p>The commodity currencies got a lift early in North American trade, in part due to a hot Canadian CPI report. USD/CAD quickly fell 50 pips on the data and stayed at the lows near 1.3333 despite a few bounces. The moves in AUD and NZD were also helped by another day of positive risk appetite and new records in some US equity indices.</p><p>Adding to the mood was a strong report on US housing starts. US home builders have been one of the winners since the dip in interest rates and have quickly rallied to all-time highs. The risk is that housing and construction are a surprise tailwind in 2024 as the US struggles to improve home supply.</p>

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