Markets:
- US stock and bond markets are closed
- Gold fell from $7 to $1,950
- WTI fell 49 cents to $71.29
- The S&P 500 fell 5 points, or 0.1%.
- Toronto TSX Comp down 0.17%
- Lead US dollar, New Zealand dollar
The US took a holiday and the dollar was still the best performer.
The topic today was mild risk aversion as China has yet to deliver a stimulus package that is rumored to come over the weekend. Also noted was the rise in yields and the fear of heavy rebalancing flows at the end of the quarter. The movement came largely from Asia and early Europe but not entirely.
Sterling was sold off late in the European day, dropping to 1.2770 from 1.2790. There were also some bids in USD/CAD as Canadian trade remained open. Canadian PPI data was light, suggesting that the Bank of Canada may not need to hike much. In addition, oil prices fell in China and reports of light Russian shipments headed for China. The USD/CAD pair ended the day up 18 pips, at 1.3213.
USD/JPY has raised a strong bid in a sign of what is likely to come with the reopening of the treasury market. Sales were met with strong offers, although the 142.00 barrier held steady.
The Euro weakened considerably around 1.0920 after an early drop in Europe. It cut into a range late in the day from 1.0908 to 1.0930 with a double top covering the upside. The more I hear from various ECB policymakers, the more it seems like some heated meeting is coming.
Antipodeans were slow all day due to pressure from China, but moves were minimal in North American trade.