Headlines:
Markets:
- GBP leads, USD lags on the day
- European equities mixed; S&P 500 futures up 0.9%
- US 10-year yields down 5.5 bps to 3.812%
- Gold up 0.1% to $1,774.08
- WTI crude down 0.8% to $85.21
- Bitcoin up 2.5% to $16,793
For months on end, it was a case of buy the dollar, sell everything else. But after the softer US CPI data last week, the retracement/correction flipped the narrative and we are seeing a continuation of sell the dollar, buy everything else.
At the end of last week, the argument was that the dollar retreat may still have some ways to go and we are seeing that realised today with another extended drop in the greenback across the board.
EUR/USD pushed up by over 1% at the highs, running into its 200-day moving average at 1.0427 before settling closer to 1.0400 now. Meanwhile, USD/JPY saw a quick drop early on from 140.20 to 139.20 and is holding just above 139.00 today as the downside pressure continues to hold in the pair.
GBP/USD rose to its highest in over six weeks in a 1% rally to 1.1880, with scope to potentially chase a move towards 1.2000. The UK budget coming up on Thursday will be one to watch for the pound.
As broader market sentiment stays more upbeat, commodity currencies are also notable gainers with AUD/USD contesting a resistance point at 0.6767 before keeping around 0.6740 now – still up 0.6% on the day. NZD/USD is up 0.8% to 0.6140 levels, just off the highs last seen since August.
US futures are keeping more upbeat with S&P 500 futures up 34 points, or 0.9%, now while bonds are also more bid as the relief rally resumes after a bit of a pause yesterday.
