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The New York trading session was still a relatively quiet one since there were no major events on deck, but some risk-off flows turned up before the closing bell.

  • U.S. President Trump: ‘Very, very close’ in deciding next Fed head
  • U.K. PM May: Post-Brexit ties discussed in recent EU summit
  • BOE policymaker Cunliffe: U.K. economy clearly slowed, November hike still in question
  • Canadian wholesale sales up 0.5% vs. projected 1.1% increase
  • Euro zone consumer confidence index unchanged at -1 as expected

Major Events/Reports

BOE official Cunliffe’s remarks

During his visit to South Wales, MPC member Jon Cunliffe signaled that a November rate hike ain’t set in stone just yet, explaining that their next tightening move is still an “open question” on timing. He said:

“I am not going to try and anticipate the meeting, but for me the economy has clearly slowed this year.”

Cunliffe went on to say that this slowdown was due to a squeeze on real incomes due to subdued wage growth and imported inflation due to sterling weakness. On interest rates, he cited:

“They will not need to go up by as far and as fast as they did before the crisis, but over the forecast period of three years rates will need to rise. The exact timing of when that starts? Well, that for me is a more open question.”

On a less downbeat note, he expressed confidence that London can retain its status as the center of finance even post-Brexit.

“We have an expertise in financial services and we have a critical mass of talent and deep knowledge and those sort of big economic agglomerations and economic activity exist because they add value and they reduce costs.”

Weak finish for U.S. equities

Markets started the day on solid footing but eventually ended in the red, dragged down by the tech and industrial sectors.

  • Dow 30 index closed 54.67 points down to 23,273.96 (-0.23%)
  • S&P 500 index was down 10.23 points to 2,564.98 (-0.40%)
  • Nasdaq was down 42.23 points to 6,586.83 (-0.64%)

U.S. bond yields were also in the red:

  • U.S. 10-year yield fell 0.36% to 2.366%
  • U.S. 30-year yield is down 0.18% to 2.885%
  • U.S. 5-year yield is down 0.25% to 2.002%

Major Market Mover(s):


The yen was able to pare its post-election losses as it filled the gaps made over the weekend.

USD/JPY retreated from 113.94 to a low of 113.24, EUR/JPY is back down to 133.27, GBP/JPY fell from a high of 150.27 to 149.70, and AUD/JPY is down to 88.58.


The scrilla pared some of its recent gains as traders factored in the uncertainty surrounding Trump’s Fed Chair pick.

GBP/USD recovered from a low of 1.3157 to 1.3212, USD/CHF retreated from a high of .9882 to .9848, AUD/USD had a late bounce off the .7800 handle to .7814, and USD/CAD paused from its climb at a high of 1.2661.

Watch Out For:

  • 1:30 am GMT: Japanese flash manufacturing PMI (rise from 52.9 to 53.1 expected)