- US July flash S&P Global services PMI 52.4 vs 54.0 expected
- China pledge to step up policy support underpins rally in oil and Chinese equities
- U.S. Treasury auctions off $42 billion of 2-year notes at a high yield of 4.823%
- Bank of Canada survey higlights the expected end of rate hikes
- June US Chicago Fed national activity index -0.32 vs -0.15 prior
- The latest IMF global growth forecasts are set to be released on Tuesday
Markets:
- WTI crude oil settles above the 200-day moving average for the first time since August
- US 10-year yields up 3.6 bps to 3.87%
- Gold down $6 to $1953
- S&P 500 up 16 points, or 0.3%
- NZD leads, EUR lags
The US dollar was generally stronger on Monday as European PMIs deteriorated, leading to strong euro selling and moderate GBP selling. The commodity currencies were generally stronger against the dollar after China hinted at more stimulus, that also helped to underpin commodities.
The yen strengthened early on worries about intervention but backed off later on a stronger dollar, positive risk appetite and Bank of Japan uncertainty. The pair fell to a low of 140.76 before climbing to 141.81.
I spoke with Reuters earlier today about the dollar picture:
"When you survey the global picture, there are more reasons to be optimistic about the U.S. than almost anywhere else, which translate to the dollar," said Adam Button, chief currency analyst at ForexLive in Toronto. "The U.S. economy really is the best of a mediocre bunch."
