Bond yields rise, global equities mixed, dollar higher
Bond traders were active sellers overnight as they weigh the impact of a massive US stimulus package with an economic rebound expected as vaccine deployment picks up. US 10-Yr Treasury yields jumped by 7 bps overnight, currently near 1.46%. Asian stocks are higher, but European and opening levels in the US stocks are slightly lower. The US dollar index is up by 0.20%, broadly stronger against its G-10 peers. Asian currencies outperformed Latin American currencies. Oil is slightly higher ahead of tomorrow’s OPEC meeting, and gold is lower by nearly $30 an oz. ADP Employment released this morning showed a rise but less than expected.
“Let go of what’s gone. Be grateful for what remains. Look forward to what’s coming.”
March 3, 2021
EUR/USD 1.2058 GBP/USD 1.3956 USD/CAD 1.2639 AUD/USD 0.7784 USD/JPY 107.06 USD/CNH 6.4703 USD/ILS 3.2965 USD/MXN 20.8508 USD/CHF 0.9177 USD/INR 72.72 USD/BRL 5.7436 USD/SGD 1.3317 USD/DKK 6.1673 USD/SEK 8.4064 USD/NOK 8.4924
The dollar is broadly higher amid a slight risk-off mood in the markets and upbeat news of vaccine deployment. The S&P 500 is opening lower, with tech stocks leading the fall. UST yields jumped back up to 1.46%. Traders await comments from various Fed officials and several important economic data releases later this week.GBP
The UK pound edged higher, the only G-10 currency to make gains versus the dollar. Traders await to hear from Chancellor Rishi Sunak today as he presents his UK budget, which is expected to show further support to the economy.EUR
The euro is lower despite upbeat Eurozone PMI data for Services and a Composite index. Eurozone PPI for January was up 1.4% compared to December’s 0.8%.CAD
Higher oil prices ahead of tomorrow’s OPEC meeting fueled strength in the Canadian dollar. The loonie outperformed most other G-10 currencies, but continues to trade within a narrow 1.25-1.2750 range in place since early February.ASIA/PACIFIC
The Indian rupee was the big gainer overnight, moving 0.90% higher vs the dollar, amid reports of renewed global investment inflows into Indian stocks.
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