The dollar’s spot returns were mixed overnight vs. the G10, gaining vs. the commodity currencies (especially those tied to oil revenues): +0.82% vs. NZD, +0.79% vs. MXN, +0.39% vs. NOK, +0.36% vs. CAD, and +0.33% vs. AUD. Dollar losses include -0.63% vs. JPY, -0.13% vs. CHF, -0.10% vs. EUR and GBP.
The price of oil is -3.66% today at $70.86/barrel, approaching the year’s low at $69.28, as concerns over economic weakness in China and the United States are seen sapping demand.
U.S. equities have started the new month on wobbly footing. The three major equity indexes are trading in the red: S&P 500 -1.19%, Nasdaq 100 -1.78%, and the DOW -1.15%.
U.S. Treasury yields are lower in all tenors with the primary declines in the far tenors: 15yr -0.066, 20yr -0.069%, and 25yr -0.07%. The 2yr/10yr yields are back to inversion (with short-term yields above long-term yields) after a brief period of yield steepening last week.
The weekly economic calendar has some key data releases on deck, but the focus will be on Friday’s Change in Nonfarm Payrolls for August. Nonfarm Payrolls has been responsible for a large portion of this year’s market volatility so traders will be paying attention.
