From Marc Chandler at Bannockburn Global Forex:
Overview: The dollar has returned from the weekend with a better bid tone. It is firmer against all the G10 currencies but the yen, Swiss franc, and Swedish krona, which are marginally firmer. The market seems reluctant to extend the euro or Canadian dollar upticks ahead of the central bank meetings this week, though, ironically, sterling's 0.25% decline leads the major currencies. Election news is a key driver today. A dramatic victory for the Morena party in Mexico, which could allow constitutional changes that eluded AMLO has spurred sales of the Mexican peso. It is the worst performing EM currencies, getting clocked for more than 2%. A coalition government is necessary in South Africa, and it is seen constructively. The rand is up about 0.25% and is one of the strongest EM currencies today. The Indian rupee is stronger as Modi appears to have broadened his support since the 2019 election.
Indian stocks have advanced by more than 3%, nearly matching the year-to-date advance. Generally, equities are firmer. Japan, Hong Kong, Taiwan, and South Korean markets rallied more than 1% today. Europe's Stoxx 600 is up for the third consecutive session, and US index futures are trading with a firmer bias. Bonds have rallied. European benchmark 10-year yields are 2-4 basis points lower. The 10-year US Treasury yield is off a couple of basis points to 4.48%. Gold reversed lower ahead of the weekend and slipped through $2015 today, its lowest level since May 9 before recovering to back to almost $2030. Despite OPEC+ decision to extend the voluntary cuts but begin phasing out the 2 mln barrel output cut agreement in Q4 has left the market nonplussed. July WTI held above last week's low (~$76.65) and was capped near $77.50, near the 200-day moving average....
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