Darth vader dove

I suspect the latest move in markets is more about the PBOC than the Bank of Canada but the market is in the mood to buy short-dated bonds as the week gets underway. That's led to broad US dollar selling that's accelerated in the last half-hour. A soft Canadian CPI report may also be helping in a reminder that the tide on inflation is turning.

Gold is beneficiary at the moment, rising $12 to a session high at $2030, which is the highest since Feb 12. Yuan weakness after today's PBOC MLF cut is a driver for emerging markets and for gold, though you wouldn't know it from today's lacklustre gains in Chinese stock markets.

The euro is a winner on the latest dollar move, rising 45 pips to 1.0821 on the day. That's the highest since Feb 2.

EURUSD 1 hour

I'll be keeping an eye on stocks at the open. Futures are down 15 points on the S&P 500 but with yields down 6.5 bps at the front end along with USD weakness, there could should be some dip buying.