Markets:
- Gold up $14 to $1958
- US 10-year yields down 4.9 bps to 3.96%
- WTI crude oil up $0.33 to $80.42
- S&P 500 up 45 points, or 1.0%, to 4608
- GBP leads, JPY lags
The Bank of Japan offered plenty of volatility and drama to wrap up a busy week for central bankers but as the dust settled the market grew comfortable selling the yen. USD/JPY started US trade near 139.00 before finishing near 141.00 after several moves in that wide range in the past 24 hours.
Helping the move were lower yields after a goldilocks US PCE report and falling employment cost index.
Outside of the yen, trading wasn’t exactly straightforward as a positive risk trade certainly didn’t flow into commodity FX, perhaps owing to domestic concerns and month-end flows. USD/CAD finished slightly higher despite another gain in crude and a rip in equities. AUD/USD tried to mount a comeback in North America but made little progress and finished the day down 0.8% as the market frets about next week’s RBA decision.
The euro and pound finished higher but only recovered a portion of the drop a day earlier. The gains came early in Europe and it was mostly sideways in North America with volatility low compared to JPY trades.
Have a great weekend, it was certainly an interesting week. Note that the VIX is down to 13 as the market grows increasingly sanguine.
