28 Nov 2014
FX Snapshot – USD up across entire G10 – TDS
FXStreet (Barcelona) - The TD Securities Research Team shares the FX and Commodity highlights of this morning, noting that USD was stronger against the entire G10 space.
Key Quotes
“Brent crude was staging a recovery in Asia after the shellacking overnight reaching highs of US$72.70 in our session, but the recovery proved to be temporary with crude currently off US$1 from its highs, -1.1%.”
“Other commodities are generally weaker, gold is off US$7 to US$1185, copper futures are 0.9% lower but iron ore futures have tacked on +2.3%.”
“The move lower in commodities continued to provide a bond bid, particularly for ACGBs, where the yield on the 10s fell 8 bps and the curve flattened 3 bps. Australian swap yields are at historic lows. NZGBs lagged, yields were only 1-3 bps lower across the curve”
“In FX, the USD was up across the entire G10 space. Again, the AUD was under pressure, off more than 0.5%, just below US$0.85. The Yen is not far behind, -0.4% to ¥118.20 and the NZD -0.35% to US$0.7840. The AUD/NZD continues to trade lower, having just broke below NZ$1.0850.”
Key Quotes
“Brent crude was staging a recovery in Asia after the shellacking overnight reaching highs of US$72.70 in our session, but the recovery proved to be temporary with crude currently off US$1 from its highs, -1.1%.”
“Other commodities are generally weaker, gold is off US$7 to US$1185, copper futures are 0.9% lower but iron ore futures have tacked on +2.3%.”
“The move lower in commodities continued to provide a bond bid, particularly for ACGBs, where the yield on the 10s fell 8 bps and the curve flattened 3 bps. Australian swap yields are at historic lows. NZGBs lagged, yields were only 1-3 bps lower across the curve”
“In FX, the USD was up across the entire G10 space. Again, the AUD was under pressure, off more than 0.5%, just below US$0.85. The Yen is not far behind, -0.4% to ¥118.20 and the NZD -0.35% to US$0.7840. The AUD/NZD continues to trade lower, having just broke below NZ$1.0850.”