It seems like ages ago, but on Monday, it seemed like markets were on the precipice. The Japan’s Nikkei 225 index on Monday fell -12.4% and analysts were figuring out where the circuit breakers would be. There were chatter on how the Fed needed to have an emergency meeting and cut rates by 75 basis points. The market priced in with 100% certainty 50 basis point cuts in September and November. Yields fell sharply.
However services ISM data didn’t come in as week, and the markets settled. By the end of the week, the flow of funds in the Forex market reversed their risk on/risk off trends. US yields erased the declines and moved higher. The US stock markets nearly erased over 3% declines in the S&P and Nasdaq indices with each closing just marginally lower.
In trading today, the USD closed mixed with gains vs the AUD and NZD and declines vs the JPY, GBP and CHF . The greenback was little changed vs the EUR and CAD.
The USDCAD is virtually unchanged after their employment data came out mixed today. The unemployment rate was unchanged from last month. The employment change was negative by 2.8K vs expectations of a gain of 22.5K, but making it not so bad, is there was a gain of 61.6K in full-time jobs. The part-time jobs felt -64.4K.
The JPY was the strongest of the major currencies today and the weakest vs the AUD.
For the trading week, the USD was mixed vs the major currencies. The greenback rose vs the CHF and GBP, but fell vs the CAD, AUD and NZD as traders bounced back those risk off/commodity currrencies. The USD was little changes vs the EUR and the JPY.
- EUR: -0.09%
- GBP: +0.30%
- JPY: +0.11%
- CHF: +0.94%
- CAD: -1.02%
- AUD: -1.00%
- NZD: -0.79%
In the US debt market, the 2-year yield is closing near the high, while the longer end is trading near lows for the day as the yield curve gets flatter. For the week, the yields are closing higher after falls on Monday on the recession fears.
- 2-year yield 4.059%, +1.5 basis points. For the week, yields rose 17.3 basis points
- 5-year yield 3.797%, -3.5 basis points. For the week yields rose 18.0 basis points
- 10 year yield 3.943%, -5.3 basis points. For the week, yields rose 15.0 basis points
- 30-year yield 4.223%, -6.3 basis points. For the week yields rose 11.1 this point
Looking at other markets:
- Crude oil is trading near $77 up $0.81. For the week the price of oil rose 4.69%
- Gold rose $4.30 or 0.17% at $2430.75. For the week gold was near unchanged at -0.46%.
- Silver fell -9 cents or -0.33% at $27.44. For the week the price fell -3.84%
- Bitcoin is trading at $60,757. For the week, the price is up $2613 going into the weekend
IN the US equities, the major indices closed higher for the day, but although the sharp declines on Monday could not be fully recouped, most of the declines were recovered..
The S&P index was the closest to positive territory with a decline of -0.04% for the week. The NASDAQ index closed lower by -0.18%.
Thnak you for your support. Have a great weekend.