A USD story overnight - ANZ
|Analysts at ANZ explained that it was a USD story overnight, with us earnings reports and a plethora of us data coming in mixed/strong providing a solid backdrop.
Key Quotes:
The NZD/USD still looks extended around current levels and we favour fading strength.
Rates: likely to open with a mild bias higher following the rise in US yields.
Global markets overview: equities turned lower during the NY afternoon with the USD strengthening.
The US treasury bond curve bear steepened. It’s difficult to pinpoint a catalyst for the move – extremely low volatility may finally be spooking some investors, possibly it was treasury secretary Munchin's comment that currency manipulators should face “real” impacts.
Late in the afternoon, it was leaked that Ryan believes the border adjustment tax is dead, adding more policy uncertainty.
Volatility spiked with VIX up as much as 18% to 11.4 with s&p 0.6% lower and NASDAQ off 1.1% at the time of writing.
The DJIA was up slightly as telecommunications offset materials and financial declines. European bourses closed before the US selloff with the Stoxx Europe 600 down 0.1% and FTSE 100 down 0.2%. The usd recouped some recent losses with CHF, NOK and cad leading declines.
Treasuries were sold, with 10 year back to 2.30 (+2bps). Oil shrugged off the stronger dollar, climbing about 0.9% and gold was steady at usd1260/oz.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.