The risk trades in equities and FX are sending opposing signals late in the day.
The S&P 500 has stretched to a fresh session high, up 0.3%, while the US dollar appears to have found a short term bottom. USD/CAD and USD/JPY have both climbed about 50 pips from the lows.
USDCAD 10 mins
Over in the bond market, yields have ticked slightly higher with 10s now trading at 4.42% from a low of 4.40%. That’s likely helping to support the US dollar.
There isn’t a great deal to mull over today but economic data this week so far has indicated that the Federal Reserve may have more room to ease than believed. That said, so much of the outlook for the remainder of the year hinges on US trade and fiscal policy.