Markets:
- AUD leads, EUR lags
- WTI crude oil up 37-cents to $73.04
- US bond market closed
- US equities closed
- Canada TSX Comp +0.3%
- Gold down $3 to $1942
It was a holiday in the US and UK so it was predictably quiet, especially after Europe went home.
Selling the dollar was the main theme throughout the day, though it staged somewhat of a comeback later. The main moves came at the Asian open as the market reacted to the debt ceiling deal and bid up risk assets.
There’s lots of talk about fading that move and we could see some of that positioning creeping in as equity futures and oil gave back some gains.
In USD/JPY, I would have thought we could see some upside given the raft of new Treasury issuance coming but it slumped after a gap higher at the open before finding a floor at 104.12 in North American trading and grinding 30-pips higher. Keep an eye on bonds when US fixed income markets reopen.
USD/CAD moved during North American trade (Canadian markets were open) but the pair followed a dip and then rebound in oil prices. The OPEC meeting is coming up and the leaks have already started.
Overall, I wouldn’t take anything away from trading in a holiday-thinned market but there will be plenty of fireworks to come as we built towards Friday’s non-farm payrolls report.