From Marc to Market:
Overview: Ahead of the long holiday weekend in North America, the US dollar is trading with a slightly firmer bias in narrow trading ranges. The drama around the Fed has intensified with FHFA Director Pulte sending a new criminal referral against Governor Cook regarding a third mortgage, while Governor Waller reiterated his dissent from last month's meeting. He supports a September rate cut in the face of the deterioration of the labor market while advocating looking through the tariff-related price pressures. China again lowered the dollar's reference rate to a new low for the year, and after the Thai baht, the yuan is the second-strongest emerging market currency this week, rising nearly 0.5% against the dollar.
While most of the large markets in the Asia Pacific region fell, the Hong Kong and mainland indices rose. This week's CSI 300 gain of 2.7% is among the best performers. Europe's Stoxx 600 is struggling. It is off for the fourth session this week and is down nearly 2% on the week. US index futures are off 0.3%-0.5%. European bonds are also under pressure. Yields are 2-3 bp higher, paring this week's decline. The 10-year US Treasury yield is up a couple basis points a little above 4.22%, which leave it down about five basis points on the week. Gold reached a new high for the month yesterday, slightly above $3423. It is consolidating lower today but is holding above $3400 (~1% for the week). October WTI is in less than 50-cent range above $64.00. It is up about 0.75% this week....
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