Markets:
- US bond and stock markets closed
- Gold down $7 to $1950
- WTI crude oil down 49-cents to $71.29
- S&P 500 eminis down 5 points, or 0.1%
- Toronto TSX Comp down 0.17%
- USD leads, NZD
The US took a holiday and the dollar was still the top performer.
The theme on the day was light risk aversion as China hasn’t yet delivered a stimulus package that was rumored to come on the weekend. Rising yields and fear of heavy quarter-end rebalancing flows were also cited. The movement largely came in Asia and early in Europe but not entirely.
Cable sold off late in the European day, falling to 1.2770 from 1.2790. There were also some bids in USD/CAD as Canadian trade remained open. The Canadian PPI data was light, indicating the Bank of Canada may not need to hike as much. In addition, oil prices slid on China and reports of lighter Russian loadings headed for China. USD/CAD ends the day up 18 pips to 1.3213.
USD/JPY held a strong bid in a sign of what’s likely to come on the Treasury market reopening. Sales met strong bids, though the 142.00 barrier is holding.
The euro largely languished around 1.0920 after falling early in Europe. It carved out a range late in the day from 1.0908 to 1.0930 with something of a double top capping the upside. The more I hear from various ECB policymakers, the more it sounds like some heated meetings are coming up.
The antipodeans were sluggish all day on China stress but the moves were minimal in North American trade.