From Marc Chandler at Bannockburn Global Forex:
Overview: The greenback is under pressure. It is off against nearly all of the world's currencies after falling in North America yesterday. Reports that Israel may be planning a strike against Iranian nuclear facilities has contributed to the broad risk off moods and helped lift July WTI to new highs since early April. While the greenback is not benefiting from the risk-off, gold has extended its gains to about $3300. Still, the dollar is off its lows and North American leadership is await.
While equities were mostly higher in the Asia Pacific region, Europe's Stoxx 600 is snapping a four-day advance. It is off nearly 0.5%. The S&P 500 ended a six-day rally yesterday, and US index futures are off around 0.75%. Bond markets are not offering a haven today. European benchmark 10-year yields are up 6-8 bp and the 10-year US Treasury yield is up five basis points to 4.54%. Monday's high in response to the Moody's downgrade before the weekend was closer to 4.56%. The US Treasury auctions $16 bln 20-year bonds today, and the demand for this tenor is not typically as for the 10-year or 30-year....
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