Foreign exchange information for New York commerce on January 12, 2021:
- Gold up $12 to $1855
- US 10-yar yields down 1.7 bps to 1.13%
- WTI crude oil up 91-cents to $53.16
- S&P 500 up four factors to 3803
- GBP leads, USD lags
Other than the rally in cable it was a slower begin to the day within the FX market. A continued rise in yields unfold to Europe the place Italian bonds made a very giant transfer.
A mushy 10-year Treasury sale flipped the script and as 10s fell to 1.13% from 1.187% the US greenback slumped. It was a case of regular promoting within the greenback as USD/JPY slid to 103.73 from 104.25.
It was an analogous transfer throughout the board with AUD/USD up 50 pips in a straight-line transfer and EUR/USD as much as 1.2206 from 1.2155 on the London shut.
You could possibly argue that the greenback wants constantly-rising Treasury yields to maintain a bid. Or you would argue that the greenback was due for a retracement after a six-day rally.
The Fed continues to crack open the greenback to more-hawkish coverage. It was a heavy day of Fedspeak with a number of members cracking open the greenback to some type of tightening albeit with imprecise timelines. The discuss of extra QE or a WAM extension is useless.
Within the day forward we’ll hear from Brainard and Clarida after which Powell on Thursday in order that theme is not going anyplace.
On the similar time, Biden’s financial stimulus plan on Thursday is the principle occasion of the week.