U.S. session traders still seemed to be in a groggy mood after clocks were turned back an hour, leaving forex price action subdued as well.
Still, it’s worth noting that the Greenback was on weaker footing, possibly on expectations for the upcoming CPI release and trade war jitters, while the Loonie was dragged down by lower crude oil.
Yen pairs edged down on resurfacing allegations of a political scandal and a cover-up by PM Abe and FM Aso, leading to calls for resignation.
- U.S. federal budget deficit at $215.2B vs. $222.B expected
- New Zealand food price index down by 0.5% after previous 1.2% gain
Mixed market performance
Financial markets seemed to be all over the place during the New York session as some of the post-NFP selling continued while Treasuries held their ground.
- Dow 30 index is down 157.13 points to 25,178.61 (-0.62%)
- S&P 500 index is down 3.55 points to 2,783.02 (-0.13%)
- Nasdaq is up 27.51 points to 7,588.33 (+0.36%)
Gold was able to chalk up some gains, presumably on dollar weakness and a bit of risk aversion, while crude oil slipped.
- Gold is up to $1,324.90 per troy ounce (+0.30%)
- WTI crude oil is down to $61.31 per barrel (-0.08%)
- Brent crude oil is down to $64.92 per barrel (-0.08%)
U.S. bond yields ticked higher:
- U.S. 5-year yield is up to 2.640% (+0.19%)
- U.S. 10-year yield is up to 2.874% (+0.13%)
- U.S. 30-year yield is up to 3.131% (+0.06%)
Major Market Mover(s):
The Greenback resumed its slump as there were no reports to prop it up in the latest session and traders likely started pricing in expectations for upcoming data.
EUR/USD edged back up from a low of 1.2290 to a high of 1.2346, USD/JPY is down to 106.34, USD/CHF also tumbled to a low of .9474, and GBP/USD recovered to a high of 1.3918.
The Loonie was also in the losers’ bench as it failed to take advantage of dollar weakness and positive NAFTA updates, giving in to crude oil declines instead.
USD/CAD is up from a low of 1.2814 to a high of 1.2846, CAD/JPY retreated to 82.80, EUR/CAD bounced from 1.5768 to a high of 1.5843, and GBP/CAD is up to 1.7861.
Watch Out For:
- 12:10 am GMT: RBA Assistant Gov Bullock’s speech
- 12:30 am GMT: Australia’s NAB business confidence index (12 previous)
- 4:30 am GMT: Japanese tertiary industry activity (another 0.2% dip expected)