Markets:

  • Gold down $22 to $1795
  • WTI crude down 32-cents to $87.03
  • US 10-year yields down 4 bps to 1.81%
  • US 2-year yields up 10 bps to 1.19%
  • S&P 500 down 23 poitns to 4326
  • USD leads, AUD lags

The US dollar put in an impressive day today, something I detailed more here. The strong GDP was icing on the cake but it was really about Powell yesterday and the front end of the yield curve continuing higher on rising rate hike expectations.

The move was non-stop throughout European trading before finally stalling late, at least in USD/JPY as the risk trade turned south again. Commodity currencies continued to bleed lower against the dollar until the end of the day.

The big technical break was lower in the euro as EUR/USD hit a 20-month low, breaking below the recent consolidation pattern in a big way.

There weren't any currencies spared from the dollar rally and gold was sucked down as well. Oil managed to fight through anyway and hit a new 7-year higher earlier but it was eventually cracked to finish moderately lower. However there were some hijinx in natural gas just before contract expiration, leading to an ugly squeeze.

US dollar news