Dollar rallies as north korea blinks seeking alpha futures market wiki


Global equities trade better bid while the ‘mighty’ US dollar finds much needed support ahead of the US open after North Korea’s Kim Jong Un signaled that he would delay plans to fire a missile near Guam, easing tensions and prompting investors to move back into beaten-down riskier assets.

Aiding higher rates stateside, and the dollar, was New York Fed President Dudley comments Monday indicating that it was ‘not unreasonable’ to think the Fed would begin trimming its +$4.2T balance sheet next month and raise rates again this year.

This gave investors the green light to begin unwinding a portion of their ‘bearish’ bets made last week after Friday’s disappointing US inflation data dampened market expectations that the Fed would raise interest rates aga in 2017.

US data this morning will give some indication on how the US economy is doing in H2.

July retail sales are expected to rise month-over-month (08:30 am EDT), while housing starts and industrial production (10:00 am EDT) is expected to be subdued.

Global equity markets have happily retraced most of last Friday’s pullback, as robust Asian corporate earnings and reduced fears of imminent military conflict between the US and North Korea supports buying interest.

In Japan, stocks have rebounded overnight, snapping a four-day losing streak and have moved away from their three-month low print hit on Monday british pound exchange rate today. The Nikkei share average rallied +1.1%, after falling -1.0% in the previous session market futures cnbc. The broader Topix index finished the day +1.1% higher.

Down-under, Australia’s S&P/ASX 200 Index gained +0.5% at the close, while Hong Kong’s Hang Seng index added +0.3% as the Shanghai Composite Index rose +0.4%.

In China, stocks ended the day higher, but weak sentiment limited those gains gender differences in language. The blue-chip CSI300 index rose +0.3%, while the Shanghai Composite Index gained +0.4%.

US Treasury prices have started this week’s second session on the back foot as investors feel a tad better about the geopolitical situation and are willing to put their money to work in riskier assets.

US 10-year yields have backed up +2 bps to +2.24% us stock futures tomorrow. The move remains modest as global yields are expected to face strong headwinds if they’re going to climb much higher.

Note: After another soft US inflation report last Friday, the market continues to remain highly skeptical that the Fed will raise rates again this year, and this despite NY Fed Dudley’s ‘hawkish’ comments yesterday euro conversion to usd. Fed funds odds see a +42% chance of a rate hike at the Fed’s December meeting, up from +36% late Friday.

In Europe, the eurozone’s benchmark German 10-year bond yield is trading up +2 bps to +0.42%, adding to Monday’s +3 bps rise and moving further off Friday’s six-week low of +0.38% usd currency. UK Gilts have backed up +3 bps to +1.101%.

The US dollar is better bid ahead of this morning’s July retail sales data release (08:30 am EDT) currency converter usd to rm. The EUR/USD is down -0.2% at €1.1757 twd usd. The market consensus is for a rise of +0.4% compared with a fall in June, but with last week’s softer inflation numbers it would not be too much of a surprise to see the headline print come in below expectation eur usd historical chart. If it does, it could send USD/JPY to fresh intraday lows. USD/JPY is up +0.7% at ¥110.39.

In the UK, July CPI missed expectations (see below), a second consecutive month, and has dented any ‘hawks’ bid for potential near-term hike by the Bank of England (BoE). Sterling is down -0.6% at £1.2890.

Elsewhere, the SEK has strengthened significantly outright (-0.46% to $8.0690) this morning after Sweden’s higher-than-expected inflation figures what are the futures in the stock market. July CPI inflation rose +2.2% on the year compared to the Riksbank’s +1.6% forecast, while CPIF inflation (calculated with a fixed interest rate) rose by +2.4%, against the Riksbank forecast of +1.8%. EUR/SEK has fallen -0.7% to €9.4874.