Headlines:
Markets:
- EUR leads, JPY lags on the day
- slightly higher European parity; S&P 500 futures up 0.3%
- US 10-year yield up 2.3 bps to 4.347%
- Gold down 0.4% to $2,670.14
- WTI rose 0.8% to $70.60
- Bitcoin rose 0.6% to $100,395
Market trends today look rather mixed and so does the landscape among major currencies.
The dollar is seen holding gains against the yen and pound mostly but lower against the euro. Against the others, the green background is slightly modified.
The move higher in USD/JPY comes as the BOJ rate hike rates for next week fade, reaffirmed by another report today – this time via Kyodo News. The chance of the BOJ keeping policy unchanged is now ~77%.
The pair is holding the technical break above its 200-day moving average on the week but also higher Treasury yields in the past five days are also helping to support the feeling. That sees USD/JPY up another 0.6% to 153.50 currently.
Elsewhere, the pound is down slightly after the UK's October monthly GDP came in softer than expected. He reiterates that the next path for the BOE is to focus on the last economic downturn, which could lead to faster rate cuts.
At the same time, the euro is up with EUR/USD holding around the 1.0490 levels at the moment as there is a large option ending at 1.0500 that could act as a magnet in draw today's price action. We'll see how things play out once the periods end later but I wouldn't be surprised if we move back down after that.
In other markets, equities look to bounce back on the day with US futures sitting higher. Then again, I would wait for Wall Street to come in to reconfirm because US trading tends to be a different ball game at times.
In the bond market, Treasury yields are sitting higher again after a flat early showing. The 10-year yield in the US is closing in on 4.35%, the highest level in almost three weeks. Are traders in position for a special Fed stop after next week's rate cut?
That wraps it up for me this week. I wish everyone a great Friday and a great weekend.
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