From Marc Chandler at Bannockburn Global Forex:
Overview: After selling off amid speculation that China’s Covid policy was going to ease, we expected the greenback to recover and consolidate ahead of Thursday’s CPI. This did not materialize yesterday, but the dollar has come back better bid today. Equity markets are mostly firmer, but nearly all the large markets, but China/Hong Kong, rising in the Asia Pacific region. Europe’s Stoxx 600 is posting small gains. It is the third session in a row of gains. US futures are firm. Benchmark 10-year in Australia and New Zealand jumped in response to local data (Australian spending and New Zealand inflation expectations) and a little catch-up after the rise in US and European yields yesterday. The US 10-year Treasury yield is a little softer at 4.20%, and European yields are 1-2 bp softer. The dollar is firm against all the major currencies but the yen, though the tone is consolidative in nature. Emerging market currencies are more mixed, but we note that the South Korean won is leading the pack with its second consecutive session of more than 1% gain.....MUCH MORE
Gold rallied strongly ahead of the weekend and is backing off a bit for the second session. It found support near $1665, about 1% below the pre-weekend high. December WTI is in the lower end of yesterday’s range but still holding above $90 a barrel. After a weather-induced 8.5% rally yesterday, US natgas is trading about 6.5% lower today. Europe’s natgas benchmark is snapping a nearly 18%, three-day slide and is up around 4.5%. Iron ore extended is rally for the sixth consecutive. December copper is flattish. It had rallied almost 7.6% before the weekend and gave back 2.25% yesterday. December wheat is slightly lower for the second session....
