market:
- WTI crude rises $1.95 to $83.58
- US 10-Year Yield Falls 0.1bps to 4.11%
- Gold falls $3 to $1939
- S&P 500 down 0.1%
- Yen leads, euro lags
All eyes were on the euro as the session opened after ECB President Schnabel stressed a slowdown in the eurozone’s economy. Those comments later echoed De Guindos, leading to another cut in the ECB’s odds as the euro weakened. Selling largely subsided by the close of European trading, dropping to 1.0836 and flattening out from there.
In US trading, the PCE and claims data were largely in line with expectations, leaving the market uncertain what to do with it. Ultimately, perhaps month-end flows outpaced the data, and dollar selling continued. This may reflect anxiety ahead of the non-farm payrolls release (and there are good reasons to worry about falling short).
All eyes were on the oil market as oil prices rose for a sixth day in a row and Russia’s Novak highlighted OPEC+’s decision due next week. Crude oil prices were volatile, but eventually rose by $2, which weighed on USD/CAD before returning to 1.3500 and falling for a third straight day.
Cables were in the spotlight in European trading as BOE chief economist Hugh Pill announced further rate hikes may there is no need. This led to an early selloff, but it stabilized around 1.2670 before falling flat.
For payroll workers in the non-farm sector, the calendar has changed and the days ahead are big. Summer vacation is over.
