- Fed's Kashkari: It is appropriate to have debate on whether to cut rates in September
- Fed's Waller doesn't comment on economy or monetary policy
- Gold climbs back above $2500. What's next and what to watch for
- Oil falls for fourth time in five trading days. What's next
Markets:
- Gold down $4 to $2503
- US 10-year yields down 2 bps to 3.87%
- WTI crude oil down $2.13 to $74.52
- S&P 500 up 1.0%
- AUD leads, USD lags
It was one of the quietest days of the year in terms of news flow (maybe the quietest) but that didn't slow the market moves as the recent round of dollar selling extended. The euro took full advantage as it rose to the highest levels since November and remains on track to close at the highs of the day.
The mode in most markets is to continue the process of erasing the early-August rout and US stocks are nearly there. Cable has followed that lead as it ran another 40 pips today and has essentially returned to mid-July levels.
AUD/USD still has some work to do to get back the declines but took a big step in that direction today with a 1% rally to 0.6730. That's come despite continued downbeat news on China and an ongoing rout in iron ore prices.
Similarly, CAD didn't get any help from oil but managed to score a decent gain for the second day and is now near the bottom end of the April-July range.
USD/JPY remained volatile but the Asia-led selling of the pair stalled early in Europe and that was followed by a modest recovery, even with US Treasury yields lower. The pair was helped out by a buoyant risk mood, led by the Nasdaq once again.
