Market wrap: currency markets were volatile - ANZ
|Analysts at ANZ explained that more significant market moves continued overnight with most of the action in currency markets.
Key Quotes:
"US equities rose, the USD fell, the US Treasury curve steepened (2-year yield -2bps; 10-year yield +2bps), and oil rose. US equities were led higher by financials (S&P 500 +0.9% at the time of writing), while bourses closed in the red in Europe, most notably in the UK (FTSE 100 -0.6%)."
"Currency markets were volatile, with “unnamed sources” at the ECB claiming the market reaction to the Draghi speech yesterday was unexpected. However, the moves quickly faded."
"EUR dropped below 1.13 on the headline, but subsequently rebounded to 1.1380; bund yields were down 4-6bps but finished largely unchanged. Elsewhere, CAD was a significant gainer as Bank of Canada Governor Poloz said that the extra rate cuts in 2015 seem to “have done their job,” raising speculation of a July rate hike."
"Canadian yields were up 6bps across the curve. GBP also spiked higher (and 10-year gilt yields rose 6bps) after the Bank of England’s Carney said: “some removal of monetary stimulus is likely to become necessary.” Oil rose over 1% while gold was marginally higher."
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