Analysts at ANZ explained that the USD tried to push higher vs euro in the aftermath of weak June German industrial orders, but failed to maintain its early momentum in what are very quiet summer FX markets.
Key Quotes:
“Fixed income retained its firmer tone following on from the US July non-farm payrolls report. That may have acted as a headwind to the USD’s progress.”
“There were no policy speeches overnight and Trump’s comments on his willingness to speak with Iran to try and resolve issues had no impact, although that tension may be creating some safe-haven thinking in the background.”
“The yield on the US 10-year note fell 1.5bps to just below 2.94%, while earlier falls in the major European 10-year bonds were 1-3bps. Equity markets were little changed in Europe (DAX -0.1%, FTSE 100 +0.1%), while in the US, the S&P 500 is up 0.2% at the time of writing and the NASDAQ up 0.6%.”
“Oil remained firm against the backdrop of looming sanctions on Iran: at the time of writing WTI is up 0.8% to USD69.01/bbl. Gold spot is down 0.5% to $1208.4/oz.”
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