Markets:
It was a lively pre-NFP day as the dollar was broadly stronger in part due to a hot reading on the prices-paid component of the ISM manufacturing survey. That briefly sent long-dated Treasury yields to fresh highs since 2002, including 5.69% on 30s as the troubling trend continued.
Those moves faded fairly quickly though and they got reason to later was the Fed's Jefferson echoed Williams from earlier in the week in suggesting the Fed take its time before hiking rates again. Fed funds now have the odds of an Oct 28 hike at 26%, more than halved from last week.
Perhaps the most-unexpected wrinkle in today's trading was a quick drop in USD/JPY in early US trading as it dropped 50 pips in a sudden move that didn't coincide with any headlines. Intervention was the obvious first thought but it would have been a small intervention and at an unusual time (and level?). In any case, the market wasn't swayed and the dip was bough and steadily erased as the pair finished up 63 pips ont he day to 158.01.
The oil market was a usual topic of conversation as a WSJ report said Trump told aides he was considering resuming strikes after the midterms, while another report said Iran had offered nuclear inspections for sanctions relief. Some reports showed mounting Hormuz and Saudi east-west exports but that failed to sway sentiment as crude moved solidy higher. There was also late talk from Iran's Fars that said a tanker was hit near Oman.
This article was written by Adam Button at investinglive.com.
Source: Investing Live - News
