From Marc Chandler at Bannockburn Global Forex:
Overview: After last week's US jobs data and anticipation of a firm CPI reading next week, US interest rates have firmed, and the dollar begins the new week on a firm note. Meanwhile, US tariff letters from the White House may begin being delivered today. Initially, it was signaled that some letter would go out before the weekend. In any event, July 9 may have lost some of its sting as the reciprocal tariffs are now said to go into effect on August 1. The US has struck deals with UK, Vietnam, and partially with China. Several Asian countries are thought to be close to deals. The greenback is firmer against all the G10 currencies, but the Swedish krona, which was underpinned by the stronger than expected preliminary June CPI. The US dollar is also trading firmer against nearly all the emerging market currencies.
After falling by almost 0.3% last week, the MSCI Asia Pacific Index traded heavily earlier day. Nearly all the large bourses in the region slipped. South Korea and Singapore were notable exceptions. Europe's Stoxx 600 fell nearly 0.5% last week and is firm today. US index futures are softer, with the S&P futures off almost 0.5% and the Nasdaq futures down around 0.6%. Benchmark 10-year yields are mostly 1-2 bp higher in Europe. UK 10-year Gilts are unwinding more of last week's jump and the yield is off 1.5 bp. Swedish bonds have been punished by the higher inflation read and are up over five basis points. The 10-year Treasury is firm near 4.35%. The US sellers $58 bln three-year notes tomorrow, $39 bln 10-year notes on Wednesday and $22 bln 30-year bonds on Thursday. Gold is about 0.8% lower, trading near a five-day low below $3310 in Europe. August WTI initially fell on the OPEC+ 548k barrel a day increase in output in August (up from 411k barrel increases in May-July). It found bids slightly below $65.50 after gapping lower and is now back into last Thursday's range, near $67.00....
....MUCH MORE
