Dollar is turning mixed in Asian session today, but it remains the weakest one for the week. The greenback was knocked down by a wave of cautious comments from Fed officials, as well as the FOMC minutes. In short, Fed could be "patient" before making another rate move. And this is actually inline with market pricing that Fed will not raise interest rates again this year. The deadlock over US government shutdown is another factor weighing on Dollar. Trump stormed out of the talks with Democrat leaders of the Congress yesterday and complained the meeting at the White House was a "total waste of time". Elsewhere in the currency markets, Canadian Dollar is the weakest one for today after yesterday's BoC rate decision. BoC stood pat and lowered 2019 growth and inflation forecast. New Zealand Dollar follows as second weakest, then Sterling. Australian Dollar is so far the strongest one for today, followed by Yen, and then Swiss Franc. In other markets, DOW closed up 0.39% overnight. S&P 500 rose 0.41% while NASDAQ added 0.87%. 30-year yield rose 0.031 to 3.024, above 3% handle. 10-year yield rose 0.012 to 2.728. But 5-year yield dropped -0.012 to 2.599. Strength at the long end will be welcomed by Fed policy makers. But yield curve remains inverted from 1-year (2.602) to 2-year (2.561) to 3-year(2.533). In Asia, markets are mixed. Nikkei closed down -1.34%. Hong Kong HSI is currently up 0.12%, China Shanghai SSE is up 0.06%. Singapore Strait Times is up 0.51%. Japan 10-year JGB yield is down -0.0015 at 0.029 but stays positive. |
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