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- Canada's Freeland says sunset clause completely unnecessary in new NAFTA
- US sells 5-year notes at 2.837% vs 2.840% WI bid
- Hammond says in 'preliminary foothills' of post-Brexit financial services talks with EU
- Canada sells 10-year notes at 2.373%
- Macron: We cannot get rid of the Iran deal
- US weekly oil inventories +2170K vs -2200K expected
- US not looking to renegotiate Iran nuclear deal - report
- Deutsche Bank gets ECB approval for wider use of Postbank funds
Markets:
- S&P 500 up 5 points to 2640
- Gold down $7 to $1323
- WTI crude up 33-cents to $68.03
- US 10-year yields up 2.5 bps to 3.02%
- USD leads, NZD lags
The US dollar continued to march higher in a day that didn't have much news to digest. The focus remained on bonds with 10s continuing to 3.02% and 2s edging above 2.50% for the first time since 2008.
It was a broad USD move that made gains across the board.
USD/JPY marched to 109.38 in a fresh high since early February. It then backed off to 109.24 then finished at a marginal fresh high of the day.
EUR/USD will be in focus in the day ahead with the ECB to come and the jitters are clearly weighing on the crowded long position. EUR/USD was down 64 pips to 1.2168 on the day. So far bids at 1.2160 are holding but bounces have been light. Assuming no big move in the final half-hour of trading, it will be the lowest close (but not lowest intraday trade) since early January.
Cable is a similar story as it continues below 1.40 and down to 1.3924. The weekly low is 1.3917. A break below would be the worst level since mid-March.
USD/CAD kept pace with the US dollar on the day on oil-settlement flows and reports that a NAFTA deal could come this week. It ran into offers at 1.2900 and drifted back to 1.2845 to finish almost flat.
It was a different story in AUD and NZD. The kiwi has been battered for 7 straight sessions and is now flat for the year.
