- WTI crude up $2.03 to $84.15
- US 10-year yields up 7.5 bps to 1.784%
- S&P 500 up 4 factors to 4662
- Gold down $6 to $1816
- JPY leads, AUD lags
The temper was poor early on and a dismal retail gross sales report threatened to worsen the scenario however the headlines did not spark large strikes, not less than not initially. Finally, the greenback rallied throughout the board, which is counter-intuitive to the information. Rising yields helped to gasoline the transfer and about 3.8 price hikes are actually priced in for this yr.
There wasn’t a lot form to the FX market strikes because it was a straight greenback bid since about 20 minutes after the retail gross sales report. US equities stumbled exhausting into the afternoon then bounced again late. The ultimate transfer offered some aid to the greenback rally other than in USD/JPY.
Elsewhere, the loonie received no assist from the continuous rally in oil. It was briefly unfavorable after retail gross sales however steadied and is now inside hanging distance of the November highs. The loonie fared considerably higher than its commodity cousins in a mirrored image of that however was nonetheless decrease versus USD on the day.
Cable wraped up one other sturdy week by halving its decline towards the US greenback late within the day. There was first rate promoting into the London repair and simply afterwards however that marked the underside.
USD/JPY completed the day flat nevertheless it was a small win for the bulls because the pair fell as little as 113.50 earlier than bouncing to 114.23 as yields rose strongly late. That is the place I will be watching within the week forward as 10s threaten the latest highs and a possible re-ignition of the nervousness about rising borrowing prices.
Be careful for Chinese language information on GDP, retail gross sales and industrial manufacturing shortly after the FX market re-opening.
Have a terrific weekend.