The US greenback is shedding floor

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Foreign exchange Information For North American Buying and selling March 2, 2021:

Markets:

  • Gold as much as $ 10 to $ 1,734
  • US 10-year yields down 0.5bps to 1.41%
  • WTI crude drops $ 1.01 to $ 59.63
  • S&P 500 down 31 factors to three,870
  • AUD leads, USD lags

When you’re searching for straightforward solutions on why the US greenback fell immediately, you will not discover them right here. Brainard launched the slightest concern about rising yields, nevertheless it wasn’t even a verbal intervention and – in any case – the overwhelming majority of the transfer got here earlier than she spoke.

One of many elements was a giant wave of gross sales of US {dollars} within the London patch. This led to some 20 pip strikes in a brief time frame, however they continued afterwards.

The euro rally was notably stunning on condition that Panetta was unequivocal in leaning in opposition to greater yields and basically pledging to behave on the March 11 assembly.

The USD / JPY softened within the session, however stagnated for the day. Sterling was in the course of the pack and got here again round 1.40. Sunak stated a withdrawal from the stimulus must come, however the timeline is just too tight.

Commodity currencies have been robust regardless of falling oil costs. Copper was greater and the AUD outperformance was as a result of exterior decline final week. Nonetheless, it is uncommon to see the AUD on the prime of the charts on a day when shares take a extremely huge hit.

The massive commodity information of the day might have been the sensational New Zealand dairy public sale. That is one other signal {that a} commodity supercycle is right here (bored with listening to a few supercycle but?)



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