- Canada March employment +72.5K vs +80K expected
- Macron seen getting 26% in Sunday's first round versus 24% for Le Pen
- ECB's Stournaras: Stagflation and recession probability very low
- US February wholesale inventories +2.5% vs +2.1% expected
- No signs of China easing lockdown rules as covid cases continue to mount. PBOC eyed
- EU Von Der Leyen: Zelensky says more sanctions are needed
- Atlanta Fed GDPNow moved up to 1.1% from 0.9%
Markets:
- Gold up $12 to $1944
- US 10-year yields up 5 bps to 2.70%
- WTI crude up $1.78 to $97.80
- S&P 500 down 12 points to 4488
- CAD leads, NZD lags
The US dollar surged in early New York trade then gave it all back.
The rally in the dollar had some backing as Treasury yields continued to march higher. Yields in the belly of the curve made new cycle highs with 7s hitting 2.81%. Three year yields also inverted over 30s and that continues to raise concerns.
A broad dollar rally came with that and it ran stops as cable fell through 1.3000 to the lowest since November 20202. USD/JPY though couldn't get through the March highs despite a sixth day of gains. That, combined with a softening of yields sparked a reversal as large as the initial move.
All the dollar gains against the pound, euro and commodity currencies unwound and most of the gains against the yen did as well.
The reversal in tone was helped by a turn higher in stocks midway through the day. That tone though didn't last into the close as US equities stumbled in the final minutes of trading.
The week ahead features US CPI and retail sales and that will help to keep things lively. Have a great weekend.
