Daily Market Report 11 Sep
Dollar softens after Presidential debate, equity markets fall
The Dollar opened softer this morning after early polls put Harris slightly ahead of Trump after last night’s presidential debate. The DXY index is down at 101.40 this morning, with the Euro trading 0.25% firmer at 1.1048 and the Pound 0.2% up at 1.3104. The biggest gainer has been the Yen, which has firmed by over 1.0% and is trading at 140.95, as the currency gained from some safe-haven demand and a hawkish Bank of Japan. US Treasury yields are lower this morning with the 30-year at 3.93%, the 10-year yield at 3.61%, and the 2-year yield at 3.56%. Equity markets in the Far East are all in negative territory this morning, while US futures have opened in the red. EM currencies are firmer on the back of the softer Dollar, with the Rand now trading at 17.90 after closing at 17.94 last night. Focus now shifts to this afternoon’s US inflation numbers for August. Markets expect both the YoY and MoM Core numbers to be unchanged at 3.2% and 0.2%, respectively, but the headline YoY number is forecast to have moderated to 2.6% from July’s 2.9%.
Softer Dollar sees Gold strengthen, but Brent crude is trading below the $70.00 mark
The weaker Dollar is helping Gold consolidate above the $2,500 level with the yellow metal currently quoted at $2,521. Platinum and Palladium are up around 0.75% and 1.4% at $943 and $978 respectively. The oil price has fallen to a 3-year low after OPEC+ once again lowered its demand forecast for both 2024 and 2025. Brent is currently trading at $69.62 and WTI at $66.15.
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