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It is typically a calm start to a busy week. Late on Monday, Wall Street pared gains to register a mixed close. As market investors wait for new direction from Fed Chair Jerome Powell, who will testify before the US Congress on Tuesday and Wednesday.
The dollar likewise had a volatile day. The amount of US jobs is also being monitored (ADP on Wednesday, Jobless Claims on Thursday and NFP on Friday). The DXY decreased 0.15% and dropped under 104.50.
The Euro was among the best performers, helped by higher Eurozone bond yields as a result of officials from the European Central Bank (ECB) making hawkish remarks. At 1.0700, the EUR/USD reached weekly highs before trimming gains. EUR/GBP surpassed 0.8800 once more. GBP/USD slightly declined after failing to surpass 1.2050. Following higher-than-anticipated inflation figures from Switzerland, the CHF gained everywhere.
Rising government bond yields decreased the value of the Yen. US 10-year yield increased from 3.83% to reach a top of 3.90%. The USD/JPY rate is around 136.00. On Thursday, the Bank of Japan will make its monetary policy announcement.
The two G10 currencies that performed the worst were the NZD and AUD. AUD/USD fell towards 0.6700 while remaining in a well-known range. NZD/USD fell to its lowest point in in a week around 0.6170.
On Tuesday, the Reserve Bank of Australia will make its choice public. A 25 bps rate increase is anticipated. On Tuesday, there will also be Chinese data.
Prior to the Bank of Canada meeting on Wednesday and the Canadian jobs report on Friday, the USD/CAD traded in a range around 1.3600.
Gold reached weekly highs above $1,850/oz but later declined as a result of increased yields and investors staying away in anticipation of Powell. To $21.00, silver decreased. The cost of crude oil increased by almost 1%. Bitcoins essentially finished flat.
Economic Data
US industrial orders decrease 1.6% on falloff in Boeing contracts. The number of US factories operating is down from last year. Because there were fewer contracts for large Boeing passenger planes, factory orders decreased 1.6% in January. Other manufacturers tended to report slightly larger bookings.
Ivey Purchasing Managers Index (PMI) data released on Monday indicated that the pace of Canadian economic growth slowed down in February. From 60.1 in January, the seasonally adjusted index dropped to 51.6. The Canadian panel of purchasing managers who make up the Ivey PMI gauge the monthly variation in economic activity. An increase in activity is indicated by a value above 50.
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