Securities:
Markets:
- JPY leads, CAD lags on the day
- European stocks up; S&P 500 futures up 0.6%
- US 10-year rates up 1.5 basis points to 2.695%
- Gold up 0.3% at $1,760.53
- WTI crude up 2.4% at $98.76
- Bitcoin down 1.4% to $23,666
There was a flurry of data out of Europe today, but the main takeaway is that second quarter economic output – at least on the face of it – appears to be more resilient than expected. However, inflation continues to rage to start the third quarter with a new high in July. This reaffirms the most dire outlook for the region, but the data had little impact on the Euro today.
Instead, the market remains focused on the debate over whether the US is in a recession. Lawmakers and policymakers deny this, but the dollar remains flat overall, but is recovering ground after the session’s early losses.
USD/JPY remains a notable move, with the pair crashing to 132.50 early in the day as bond yields fell. But as the latter has picked up, we see the pair rallying back to 133.40 now – still down 0.6%.
EUR/USD moved from 1.0200 to 1.0255 before heading back down towards 1.0200-10 now with big expiry nearby. The push and pull of the dollar was the main reason for the market action today.
Meanwhile, GBP/USD hit as high as 1.2245 before falling back down 0.2% to 1.2140-50 at present, holding below key resistance just above 1.2200.
Elsewhere, USD/CAD retreated to lows of 1.2790 to start the session, but pulled back to 1.2845 as the USD regains some balance. AUD/USD also hit a high of 0.7030 before falling back to 0.6970 for now – down 0.3% on the day.
In equities, things still look quite bullish as investors feed on the narrative that bettors are backtracking on the Fed’s aggressiveness, considering there are more compelling signs of an economic slowdown.
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