• Gold up $40 to $1699
  • WTI crude oil up $3.79 to $83.26
  • US 10-year yields down 15 bps to 3.65%
  • S&P 500 up 93 points, or 2.6%, to 3678
  • NZD leads, JPY lags

Q4 certainly started off much better than Q3. The market did a great job of shaking off the Credit Suisse rumors as futures were higher and the US dollar lower coming into New York trade but after a good start, there was a quick stumble in stocks. That changed after a softer ISM manufacturing report.

The dollar fell in the aftermath and equities soared. In bonds, a 4% risk free yield is suddenly looking like a memory with 10s quickly down to 3.65%.

The commodity currencies were particularly strong along with GBP. That group has had the tightest correlation with the risk trade so that's not surprising but it was a nice turn as the commodity group erased Friday's declines and GBP continued its rebound.

The euro didn't get much of a lift as the market contemplates what's next from the ECB and in the energy crisis. USD/JPY rebounded 50 pips from the lows on risk appetite. The pair remains close to 145.00 as that battle rages.

wrap fx news ticker Oct 3