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U.S. bond yields continued their ascent while equity indices rebounded, giving more support for the Greenback, even without any major reports. The Loonie made a bit of a recovery on a bounce in crude oil.

  • Chinese CB leading index up from 1.2% to 1.7%
  • U.S. EIA crude oil inventories up by 2.2M barrels vs. estimated 1.6M drop
  • BOC Governor Poloz and Deputy Wilkins testify in Canadian Senate hearing

Major Events/Reports:

A bit of risk-taking?

Or just profit-taking? Risk aversion was in full swing during the previous trading session that selling pressure may have eased a bit during the New York hours.

Equity indices closed slightly higher even with another down day for the tec sector:

  • Dow 30 index is up 68.27 points to 24,092.40 (+0.28%)
  • S&P 500 index is up 3.43 points to 2,638.49 (+0.17%)
  • Nasdaq is down 2.85 points to 7,003.61 (-0.05%)

Gold also returned some of its safe-haven gains while crude oil pared its intraday losses even with a surprise 2.2 million build in EIA stockpiles:

  • Gold is down $9.40 to $1,324.40 per troy ounce (-0.65%)
  • WTI crude oil rebounded to $67.94 per barrel (+0.35%)
  • Brent crude oil is up to $73.94 per barrel (+0.11%)

Bond yields chalked up another day in the green:

  • U.S. 10-year yield is up to 3.028% (+1.44%)
  • U.S. 5-year yield is up to 2.837% (+0.97%)
  • U.S. 2-year yield is up 2.492% (+0.44%)

Major Market Mover(s):

USD

The scrilla was higher across the board on account of rising bond yields and a bounce in U.S. equities.

EUR/USD is down 59 pips to 1.2173 (-0.48%), GBP/USD is down to 1.3938 (-0.28%), USD/JPY is up 50 pips to 109.33 (+0.47%), and USD/CHF is up to .9827 (+0.40%)

CAD

The oil-related Loonie tagged along with the pickup in Black Crack prices as traders may have closed out positions ahead of Poloz’s testimony.

NZD/CAD is down 59 pips to .9077 (-0.65%), AUD/CAD is down 35 pips to .9718 (-0.40%), EUR/CAD is down to 1.5634 (-0.39%), and GBP/CAD fell to 1.7896 (-0.22%)

Watch Out For:

  • 2:30 am GMT: Australian import prices q/q (1.3% expected, 2.0% previous)