Markets: Gold up $3 to $1866 WTI crude oil down $2.40 to $102.77 US 10-year yields down 2 bps to 2.97% S&P 500 down 20 to 4175
Markets:
- Gold up $3 to $1866
- WTI crude oil down $2.40 to $102.77
- US 10-year yields down 2 bps to 2.97%
- S&P 500 down 20 to 4175
- AUD leads, USD lags
As we wind down the FX trading day, the euro, USD, pound and yen are virtually unchanged against one another while the loonie has made some moderate gains and the Australian dollar is strongly higher following the RBA.
The main move in North American FX was an early pop in the euro to 1.0577 from 1.0520 but it eventually faded. There was no clear catalyst for the move and could have been a combination of 1) A dip in US yields 2) Position squaring ahead of the Fed 3) Attempts to defend the lows.
In any case, the move didn’t last and completely faded within hours. That came despite some hawkish comments from Schnable that barely moved anything.
Cable ran higher with the euro but to a lesser extent. It also gave it all back and more. There was a late dip in US equities that coincided with GBP selling but even as stocks recovered there was only a small bounce.
USD/JPY dipped in early US trading but the 30-pip decline was later picked up. The strong JOLTS and factory orders numbers might have helped.
AUD/USD didn’t follow through on the Asia-Pacific gains but consolidated in the 0.7080-0.7125 range.
CAD held strong despite a reversal lower in oil prices. That was buffered by a rise in natural gas prices including a look above $8 in Henry Hub.
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