Headlines:Markets:CHF leads, AUD and NZD lag on the dayEuropean equities mixed; S&P 500 futures flatUS 10-year yields down 4.4 bps to 3.918%Gold d
Headlines:
Markets:
- CHF leads, AUD and NZD lag on the day
- European equities mixed; S&P 500 futures flat
- US 10-year yields down 4.4 bps to 3.918%
- Gold down 0.3% to $1,849.68
- WTI crude down 1.5% to $78.48
- Bitcoin up 0.6% to $22,390
The mood music from Friday is continuing somewhat, with lower bond yields once again at play today. Equities were firmer to start the session with the French CAC 40 index touching fresh record highs in hitting 7,400 before seeing gains ease slightly. The overall sentiment now is more tentative as we head towards US trading.
The dollar was largely unfazed by the lower yields though, having pushed higher in Asia trading against the Chinese yuan. That came after some disappointment as China authorities set out a lower than expected GDP target for the year i.e. 5%.
USD/JPY is seen up 0.2% to above 136.00 despite Treasury yields pushing lower on the day while GBP/USD is slightly softer near 1.2000, down 0.3%.
The gains for the dollar were more evident against the antipodeans and it stayed that way throughout, with both the aussie and kiwi acting as proxies for the yuan. AUD/USD gradually extended its losses from 0.6735 to 0.6720 on the session with NZD/USD falling from 0.6190 to 0.6175 – both down 0.7% currently.
Besides that, the franc got a brief lift after Swiss inflation came in hotter than expected. EUR/CHF fell 30 pips from 0.9960 to 0.9930 but has largely recovered the drop, similar to USD/CHF.
For now, it’s all about the mixed flows as markets are sorting out their feet ahead of key central bank policy decisions and also Fed chair Powell’s testimony tomorrow and on Wednesday.
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