+44 (0)20 7614 4688 customerservice@cixmarkets.com

Market wrap: US yields lower yet dollar unchanged – Westpac

Analysts at Westpac offered a market wrap.

Key Quotes:

“Global market sentiment: US bond yields fell slightly ahead of a White House statement on Iran, while the US dollar is unchanged.

Interest rates: US 10yr treasury yields fell from 2.35% to 2.32%, while 2yr yields ranged between 1.51% and 1.52%. Fed fund futures yields continued to price the chance of a December rate hike at 87%.

Currencies: The US dollar index is unchanged on the day. EUR fell from1.1880 to 1.1827. USD/JPY ranged between 112.10 and 112.45. AUD rose from 0.7810 to 0.7836. Outperformer NZD rose from 0.7100 to 0.7146. AUD/NZD fell from 1.1010 to 1.0960.

Economic Wrap

US PPI rose 0.4% in Sep (as expected), although the ex-food and energy measure also rose 0.4% (vs 0.2% expected). Annual PPI growth is at 2.6%.

Fed commentary came from Bullard: the Fed risks losing credibility if it doesn’t defend the inflation target, Brainard: the Fed could better time rate hikes after future recessions, and Powell: there’s risk of a market “tantrum” due to low volatility currently. ECB Pres. Draghisaid it didn’t see sufficient progress on wage inflation.”

CFD and Fx trading can result in losses that exceed your deposits. Ensure you understand the risks.