The US Dollar dropped across the board on Wednesday, even as US yields jumped. Most European stock markets posted losses, and in Wall Street, indexes were mixed. The market hit bottom after the release of the US ISM Manufacturing PMI but then recovered.
The February Index rose to 47.7, showing the sector remains
in contraction territory. The surprise came from the Price Paid Index, which
jumped 6.8 points to 51.3 and triggered a sell-off in Treasuries and a
short-lived recovery of the US Dollar. Currencies reflected somewhat more
optimism than equities. Chinese PMIs rose above 50, leading to hopes for the
economic outlook.
Market participants will continue to look closely at the
bond market after a day in which US and European bond yields jumped after inflation
figures. The economic calendar shows for Thursday Eurozone CPI, European
Central Bank minutes and US Initial Jobless Claims.
The Euro was among the top performers across the FX board,
boosted by higher-than-expected German inflation numbers and hawkish ECB
expectations. EUR/USD hit weekly highs near 1.0700 and then pulled back. The
Pound lagged with GBP/USD testing levels under 1.2000. USD/JPY ended flat on
Wednesday despite higher government bond yields.
AUD/USD rebounded from monthly lows, being able to defend
the 0.6700 support. The Kiwi was the best performer on Wednesday, with NZD/USD
hitting the highest level in two weeks at 0.6275. USD/CAD dropped modestly and
is hovering around 1.3600.
Gold rose for the second day in a row despite higher yields,
finding resistance at $1,845/oz. Bitcoin was unable to regain $24,000 and
pulled back.
0 comments:
Post a Comment