- McDonald's says business slowed 'meaningfully' in the majority of markets
- Dallas Fed July manufacturing survey -17.5 vs -15.1 prior
- Treasury says it will borrow $740 billion in Q3
- UK Chancellor: We have inherited overspending of £22 bilion, not to act isn't an option
- Hurricane season might pick up later this week
- FBI: Motive still not clear in Trump shooting, no evidence of co-conspirators
- UK July CBI retailing reported sales -43 vs -24 prior
Markets:
- Gold down $2 to $2383
- US 10-year yields down 2.6 bps to 4.17%
- S&P 500 up 0.1%
- WTI crude oil down $1.27 to $75.89
- USD leads, NZD lags
Monday’s was something of a slower start to what will be an action-packed week in financial markets. Newsflow was light but it will rapidly pick up from now through Friday's non-farm payrolls report.
The FX market started US trade with some life as the dollar strengthened into a backdrop of declining risk assets, even as Treasury yields declined. The S&P 500 had traded 1% higher shortly after the open but gave it all back and bitcoin slumped to $67K after tagging $70K. Oil fell once again and gold prices briefly sank to $2370 before bouncing.
The dollar made strong moves against the euro (down to 1.0804) and the commodity currencies but that price action reversed after the London fix in a sign that month-end flows were the driver. The euro climbed up to 1.0823.
The UK fiscal situation was in focus and that led to some GBP selling early on rumours of a capital gains tax hike. However the new chancellor didn't offer much in the way of specifics except to say that the coffers were empty and that everything is on the table in an Oct 30 budget. The main thrust appears to be some austerity and that was enough to reverse some GBP losses.
The yen mostly traded sideways while the commodity currencies tracked the risk trade lower.
