- US October housing starts 1.372m vs 1.350m expected
- Fed's Collins: I wouldn't take additional hiking off the table
- OPEC+ sources:To consider whether to deepen oil output cuts at next meeting on November 26
- Atlanta Fed GDPNow Q4 2.0% vs 2.2% prior
- Fed's Goolsbee: We will do whatever it takes to beat inflation
- US issues fresh Iran-related sanctions
- Fed's Daly: Fed needs 'the boldness to wait' given uncertainty
- Baker Hughes oil rig count +6 to 500
- Fed's Collins doesn't comment on current policy
- ECB's Wunsch: We are in a weak form of stagflation today
- Canada PPI data for October -1.0% versus 0.4% last month and 0.2% expected
Markets:
- Gold down $1 to $1980
- WTI crude oil up $2.90 to $75.80
- US 10-year yields down 1 bps to 4.44%
- S&P 500 flat
- JPY leads, USD lags
The FX and energy markets were the lively spots on Friday as bonds and equities started the weekend early.
The US dollar continued to slide as the market firms up the belief that the Fed is done hiking and the economic data will begin to turn south. The euro was steadily bid and climbed above 1.09 for the first time since late August and finished near the highs.
Cable was strong as well as it rose to 1.2460 from 1.2375 at the start of European trading. The dollar found some bids into the London fix but quickly gave it back.
The Fed's Collins had an opportunity to push back against market pricing but only offered up token resistance to the 'no hikes' narrative. The bond market chopped around and ultimately front end yields finished a tad higher with the long end down.
USD/JPY did most of its work in Asia and Europe as it fell to 149.30. It bounced slightly in North American trade but still finished the day down 110 pips.
The antipodeas all made up some ground in erasing yesterday's losses. They were helped along by a rebound in oil.
