Markets: Gold up $11 to $1746US 10-year yields 2.2 bps to 3.06%WTI crude oil up $3.33 to $93.69S&P 500 down 8 points to 4130CAD leads, USD lagsThe
Markets:
- Gold up $11 to $1746
- US 10-year yields 2.2 bps to 3.06%
- WTI crude oil up $3.33 to $93.69
- S&P 500 down 8 points to 4130
- CAD leads, USD lags
The dollar was modestly softer on the day with the focus on energy until the data began to cross. The US services PMI was terrible and it underscored the intense focus on economic data right now (and/or low liquidity). The dollar crumbled, falling 120 pips against the yen in short order, followed by another leg lower on the housing data 15 minutes later.
That turned out to be an overshoot with the dollar retracing about half of the losses in the remainder of the session and that’s where we stand now. The bond market helped the dollar along as it had second thoughts. Traders continue to fret about a hawkish Powell at Jackson Hole.
USD/CAD was particularly soft on the renewed focus on energy. Oil posted a strong day on more talk about OPEC cuts and slow progress on an Iran nuclear deal. Natural gas hit $10 for the first time since 2008 but later sank on another delay to Freeport. The pair fell back below 1.30.
The euro got above parity for a few hours but is back to 0.9966 and up 25 pips on the day. There was some relief in TTF prices but the Freeport delay will be a problem.
On the whole, FX was the place to be with stocks and bonds finishing mostly unchanged.
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