Headlines:
Markets:
- CAD leads, NZD lags on the day
- European equities lower; S&P 500 futures down 0.2%
- US 10-year yields down 5.5 bps to 4.932%
- Gold up 0.5% to $1,982.84
- WTI crude up 1.5% to $89.71
- Bitcoin up 4.4% to $30,001
Traders are feeling sidelined for the moment awaiting further key developments in all areas, before really firming up any convictions. The bond selling hasn’t yet resulted in 5% yields in 10-year Treasuries, with flows also balanced out somewhat by uncertainty and rising tensions in the Middle East.
Stocks are pinned down for now but US futures are pointing to modest losses, although European indices are hammered down towards the end of the week.
In FX, it’s all about watching for USD/JPY at the 150.00 mark. The pair briefly clipped the figure level according to some quotes and that triggered a drop to around 149.60-70 before keeping just under 150.00 again now.
The pound also fell for a moment after a weak UK retail sales data, with GBP/USD slipping to 1.2095 before holding flattish around 1.2135 currently.
The loonie is the one leading gains on the day, helped out by higher oil prices with commodities still impacted by the Israel-Hamas conflict and worries surrounding the region.
WTI crude is up 1.5% to $89.71 while gold is also underpinned and testing the June and July highs at $1,983-87 on the day.
We’re approaching the weekend and that could explain the more cautious approach for now, after having seen a similar take last Friday already.