Headlines:
- Dollar holds advance ahead of North America trading
- The relief rally hits pause for now
- ECB's Panetta: Tight monetary policy is to ensure inflation does not become entrenched
- Switzerland October producer and import prices 0.0% vs +0.2% m/m prior
- SNB total sight deposits w.e. 11 November CHF 571.1 bn vs CHF 572.1 bn prior
Markets:
- USD leads, JPY lags on the day
- European equities slightly higher; S&P 500 futures down 0.3%
- US 10-year yields up 5.6 bps to 3.885%
- Gold down 0.8% to $1,757.20
- WTI crude down 1.2% to $87.87
- Bitcoin flat at $16,754
It was a quiet session for the most part, as the post-CPI relief rally meets a pause to start the new week.
Equities are looking tentative with US futures keeping slightly lower while bond yields are higher on the day. That is keeping the dollar more bid, with the greenback also getting help from pushback remarks by Fed board member Waller here.
USD/JPY was a notable gainer as it pushed up by over 1% to be back above 140.00, with the high touching 140.80 before settling around 140.20-30 levels at the moment.
EUR/USD is seen down 0.6% to 1.0290 while GBP/USD is down 0.5% to 1.1780, though both off their earlier lows. Meanwhile, AUD/USD is down 0.4% to 0.6675 and USD/CAD up 0.3% to 1.3300 as commodity currencies keep lower as well.
Despite the dollar's advance, the technicals still suggest that the post-CPI retreat is very much intact and there is scope for both sides of the play at the moment.
US traders will be back from the long weekend so let's see what they will have to say later today.