Titles:
Markets:
- AUD leads, USD lags on the day
- European actions greater; S&P 500 futures up 0.7%
- US 10-year yields down 0.5 bps to 4.589%
- Gold rose 0.2% to $2,642.93
- WTI crude rose 0.5% to $74.36
- Bitcoin rose 1.3% to $99,503
This is not a good day for the dollar bulls as they are squeezed to start the new week. The dollar was already slightly softer in Europe earlier before a report that Trump aides may be considering a softer stance on tariffs helped fuel risk-on markets.
The dollar thus weakened with EUR/USD rising from 1.0340 to 1.0400, while USD/JPY fell from 157.80 to 156.85 currently. It’s a broad-based move with GBP/USD also up 1% to 1.2540 and USD/CAD down 0.9% to 1.4315 on the day.
In response to the headlines, stocks also rallied with S&P 500 futures up 0.7%. European indices also posted strong gains with the DAX up over 1% and the CAC 40 up over 2%. In the bond market, yields have fallen from previous highs, with yields on the 10-year Treasury falling from 4.63% to 4.59% now.
It’s a case of squeeze the dollar, buy everything else in this case.
And in the commodities market, gold turned losses into gains as it also captured a bounce off its 100-day moving average and is now up 0.3% at around $2,643. Silver maintains its strong start to the year, as it is currently up over 2% at $30.23.
The question now is, will we hear any denials from Trump about this supposedly softer approach to tariffs? He has threatened to play big, so it will be hard to imagine him suddenly easing up when he takes over later this month.