- Fed's Brainard: Appropriate 'soon' to move to a slower pace of increases
- New Zealand house prices fall 7.5% y/y
- SNBs Jordan: IN 2023, sees Swiss growth weaker than this year. USDCHF trades near lows.
- NY Fed 5-year inflation 2.4% vs 2.2% in Sept survey
- Binance to form industry body amongst the main crypto firms
- Biden: I'm not looking for conflict, I'm looking to manage competition
- BOC's Macklem: Inflation is too high around the world
- China Xi: Taiwan question is at the very core of China's interests
Markets:
- Gold up $1 to $1773
- US 10-year yields up 4.3 bps to 3.87%
- WTI crude oil d own $3.65 to $85.31
- USD leads, JPY lags
- S&P 500 down 0.8%
Back-and-fill was the theme with a light economic calendar and following the incredible drop in the US dollar late last week. The surprise was that the bounce in the US dollar was so thin. It made some headway against the pound and yen but elsewhere it was more of a dead-cat bounce.
Some of that came with solid resilience in stock markets. The Nasdaq erased early gains to trade flat and that was looking like it would hold until heavy selling in the last hour of trading as it finished near session lows.
The comments from Brainard stoked some USD selling as she didn't choose to push back against fading market expectations for rate hikes. The terminal rate sits at 4.93% now, in part due to Waller's comments in Asian trading.
The euro is running into resistance in the 1.0350/70 but it fell to 1.0272 early in US trading before rebounding. It wraps up the day down only slightly.
Cable didn't fare as well and has traced out a series of lower highs from 1.1850 down to 1.1800 and that bears close watching.
The loonie also trailed commodity currencies as oil struggled. USD/CAD has grinded higher to 1.3300 from 1.3250 and is finishing at the best levels of the day.
