- ADP June US employment 132K vs 288K expected
- Canada Q2 GDP +3.3% vs +4.4% expected
- ECBs Villeroy: Next rate move must be carried out with determination
- ECB's Holzmann: The minimum next week is 50 bps and 75 bps should be debated
- Fed's Mester: Inflation fight will be a long one
- Fed's Mester: I don't anticipate the Fed will cut rates next year
- US weekly crude oil inventories -3326K vs -1483K expected
- Yellen says substantial progress made on G7 Russia oil-price cap
- Michael Saylor sued for tax evasion in Washington DC
- FDA approves omicron covid-19 booster shots
- Hu Xijin warns: Never shoot down drones from the mainland....
- Hurricane season has been quiet but there are some storms likely coming
- China's property market is in a 'severe depression' top developer says
- Goldman Sachs now expects the ECB to hike by 75 bps in September
- OPEC continued to undershoot quotas in August but the shortfall narrowed
Markets:
- Gold down $14 to $1709
- US 10-year yields up 7 bps to 3.18%
- WTI crude down $2.49 to $89.16
- S&P 500 down 30 points to 3955
- S&P 500 down 4.2% in the month, Nasdaq -5.2%
- EUR leads, GBP lags
It was the final trading day of the month and that added some extra volatility. There was a strong bid for the euro into the London fix and that boosted it to 1.0078 at the highs. Most of that strength stuck around into the end of the day and that led to some euro outperformance. On the fundmamental side, higher eurozone CPI and solid expectations of a 75 bps hike next week underpinned the bid.
GBP wasn't so luck is it touched 1.1600 to make a new post-pandemic low. Energy price hikes, out-of-control inflation and political uncertainty weighed on the pound.
USD/JPY found a late bid to finish near the highs of the month on rising yields. The market is getting closer to pricing in 4% Fed funds by March and that's leading to a steady bid in the pair.
Commodity currencies softened but not terribly. They finished the day near the lows with only CAD suffering a real decline. It bounced nearly 60 pips in the middle of the day in volatile oil trading but as crude fell again late and stocks sank to finish at the lows, the loonie tracked that move.
