Equity gains led by Tech, oil hits 7-year high, dollar higher
US equities are opening higher, led by the tech sector, and following foreign stocks, mostly in the green. The tech-heavy NASDAQ index is bouncing hard after yesterdays’ drop to its lowest level since July. WTI oil prices are nearing $80 and natural gas contracts soared to their highest level since 2014. The dollar is higher following a three-day decline. US Treasury 10-year yields remain near 1.5%. Traders are focused on Friday’s US job data.
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October 5, 2021
EUR/USD 1.1592 GBP/USD 1.3624 USD/CAD 1.2570 AUD/USD 0.7283 USD/JPY 111.43 USD/CNH 6.4448 USD/ILS 3.2333 USD/MXN 20.5941 USD/CHF 0.9278 USD/INR 74.4512 USD/BRL 5.4636 USD/SGD 1.3581 USD/DKK 6.4176 USD/SEK 8.7360 USD/NOK 8.5468
The USD index is higher after declining for three days, although its gains are limited and not universal. In today’s risk-on mood, the safe haven Japanese yen and Swiss franc performed the worst, while oil-rich Norway saw its krone as the top performer.GBP
The UK pound moved little overnight, despite upbeat news today on September UK PMI data. Traders are generally bullish the pound amid expectations that the Bank of England will soon begin to reduce stimulus/tighten policy to address excessive inflation.EUR
The euro is down nearly 0.25% overnight in line with broad dollar strength and following news that Eurozone PMI’s in September and PPI for August were lower than expected. Retail Sales for August will be released tomorrow.CAD
The loonie gained a bit overnight against the US dollar, despite soaring energy prices. USD/CAD continues to trade under 1.26, but within a 1.25-1.29 range over the last two months. Traders await Canada’s employment data on Friday.ASIA/PACIFIC
The Japanese yen was the worst performing currency overnight, down nearly 0.4%. No specific news was driving the currency lower, but comments from Japan’s Foreign Minister Motegi about supporting Taiwan amid regular incursions by Chinese military aircraft may be unsettling traders.
Australia’s central bank kept policy unchanged. New Zealand’s central bank meets tomorrow, and increased uncertainty about whether or not it will hike rates has led to higher currency option prices/more protection.
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