From Marc to Market:
Overview: Broadly speaking, the dollar's recent pullback was extended today but the momentum appears to be slowing, perhaps ahead of tomorrow's US CPI report. The Dollar Index is slipped to its lowest level since September 25 before steadying. The greenback is mixed as the North American market is set to open. The dollar bloc and Swedish krona are the underperformers. The Swiss franc is the best, up about 0.2%, while the yen and euro are little changed. Most emerging market currencies but the Chinese yuan are firmer. Gold is extending its recovery after consolidating yesterday. It is above $1870 after bottoming at the end of last week near $1810.50. The next upside target is around $1880.
The rally in bonds is continuing. The 10-year US Treasury yield peaked near 4.88% last Friday and is near 4.56% today, off around nine basis points to approach the 20-day moving average (4.53%), which it has not traded below in a month. The markets absorbed $209 bln in US bills yesterday and $46 bln sale of three-year notes. Today, the Treasury is back with $56 bln in a four-month bill offering and $35 bln 10-year notes. European benchmark 10-eyar yields are mostly 5-8 bp lower. Equities are mostly firmer. The MSCI Asia Pacific Index is up for the fifth consecutive session as Japan and China reportedly ready more fiscal support. Europe's Stoxx 600 is slightly firmer and US index futures are trading with a higher bias. November WTI is trading quietly in yesterday's range. Note that after rallying by more than 30% in the first two days of the week, Europe's natural gas benchmark is off slightly today despite what Finland says looks like sabotage of its pipeline with Estonia. The US natgas futures contract is higher for the seventh consecutive session. During this run, it has risen by about 20%.Asia Pacific
The Bank of Japan raised its FY2023 CPI forecast to 2.5% in July from 1.8% in April....
....MUCH MORE
