Markets: Gold down $18 to $1838 US 10-year yields up 11 bps to 2.85% WTI crude oil up 10-cents to $115.17 CAD leads, JPY lags S&am
Markets:
- Gold down $18 to $1838
- US 10-year yields up 11 bps to 2.85%
- WTI crude oil up 10-cents to $115.17
- CAD leads, JPY lags
- S&P 500 down 26 points to 4132
It was the final trading day of the month and that always adds an element of random volatility into the mix. In addition, the US was returning from Monday’s holiday.
The dollar was bid in the early going on flows, higher yields and moderate risk aversion. AUD, NZD and GBP were caught up in that move and fell relatively quickly in 25-30 pip declines.
The mood stabilized from there as equities posted an impressive intraday turnaround. That led to a total retracement in the aforementioned moves.
A more-sustainable push was in yen crosses. USD/JPY rose more than 100 pips from the Asian lows. A strong rally early in US trading was partly beaten back before resuming again late to hit 128.72.
CAD was in its own world. The GDP print missed on lower export volumes and some revisions to January data, likely due to lockdowns. Most economists brushed it off and so did the market, instead focusing on higher energy prices. But when oil reversed lower on the OPEC headline, the loonie didn’t give much back. It’s narrowly held off USD as the best performer on the day. The Bank of Canada decision is on Wednesday.
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