Markets:
- Gold down $11 to $1805
- US 10-year yields down 7.3 bps to three.02%
- WTI crude oil down $3.84 to $105.94
- S&P 500 down 41 factors to 3780
- Nasdaq first half was worst ever
- JPY leads, USD lags
The US greenback gave again a few of its hefty H1 positive aspects (it is one of the best performer this yr) on the ultimate day of buying and selling this month.The catalysts have been within the PCE report because the inflation portion was a contact delicate and the consumption facet was decidedly weak. In flip, the scope for Fed hikes is fading with the terminal price now pegged at 3.50% in March and declining from there.
Combined in with that could be a hefty set of quarter-end flows. The bond market had a very robust bid, which may be an indication of progress considerations. Oil pale badly and crack spreads narrowed in an indication of demand destruction.
EUR/USD fell under 1.04 in Europe however made a pleasant turnaround from there to 1.0482. Cable tracked the identical transfer and each accelerated after the PCE report. Compounding that was a fall into destructive territory within the Atlanta Fed GDP tracker.
The commodity currencies have been surprisingly robust given the delicate commodity backdrop and stoop in equities. Canada is on vacation on Friday and US buying and selling might be thinned forward of the lengthy weekend however there are some notable knowledge releases with ISM manufacturing and development spending.
