From Marc Chandler at Bannockburn Global Forex:
Overview: The US dollar enjoys a firmer tone against most of the G10 currencies in relatively quiet turnover. Ironically, the Australian dollar is the best performer and it is virtually flat, despite the beginning of the central bank's easing cycle earlier today. Governor Bullock pulled over a hawkish cut in the sense and futures market pushed out the next cut until August. The UK report stronger wage growth and the first increase in employment in three months but it did not prevent sterling was softening. New Zealand's central bank is widely expected to deliver its third consecutive half-point cut tomorrow, and the New Zealand dollar is the weakest among the major currencies, off nearly 0.50%. Most emerging market currencies from central Europe and Asia Pacific are softer. The Mexican peso's 0.20% gain puts it on the top of the EM leaders' board.
Equities are mixed. In Asia Pacific trading Tokyo, Hong Kong, South Korea, and Taiwan rallied. Profit-taking was seen in China, though mainland shares that trade in Hong Kong continued to outperform. Australia, New Zealand, and Indian equities fell. Europe's Stoxx 600 is virtually flat, while US index futures are slightly firmer. After rising yesterday, European benchmark 10-year yields are narrowly mixed today, while the 10-year Gilts yield is up almost two basis points. The 10-year US Treasury, which settled below 4.50% before the long holiday weekend on the back of disappointing data, is trading slightly above that threshold now. Gold was tagged for 1.5% before the weekend. It rose by 0.5% yesterday and is up almost as much today. It is re-establishing a foothold above $2900. Talk that OPEC may delay its output increase may be behind the firmer prices today. April WTI held support near $70, this year's low and has approached $72.
USD: The Dollar Index is set to snap a five-day decline today that had brought it to a two-month low....
....MUCH MORE
