Mid-market update: USD slightly soft, Fixed income continues to rally – TDS

FXStreet (Barcelona) - Paul Fage, Senior Emerging Markets Strategist at TD Securities, summarizes the market performance, noting that USD slightly weak with the antipodeans trading strong against the dollar in the FX space, while fixed income continues to rally.

Key Quotes

“Ahead of the release of US CPI and durable goods, we have slight USD weakness. JPY, EUR and GBP almost unchanged against USD. NZD up 0.5% on generally positive data releases earlier today. AUD fell on the back of a weak capex report, but has since recovered, and is up 0.15% against USD, but lagging NZD.”

“In EM, RUB up 1.4% against USD on the back of higher oil prices. EURHUF continues lower to 303.1 and seems poised to test the May 14 lows of 301.85. MYR continued yesterday’s rally and is up 0.6% vs USD.”

“Asian equity markets generally stronger, with Shanghai Composite up 2%. European equity markets are mainly stronger.”

“Fixed income continues to rally, and Eurozone peripherals, with the exception of Greece, are particularly strong. 10y UST –2.4 bp, 10y bunds –3.5 bp., 10y Italy –10.9bp.”

“Brent Oil is up 0.2%. Base and precious metals stronger.”