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CNY: A Risk-On Currency?


WTI gains $1


German 5s/30s is flattening


Greenback Consolidating, NZD Underperforms

  • An unsurprisingly quiet European open, with US markets closed for the Labor Day public holiday. USD mildly outperforms in a minor correction off the NFP lows. Stock futures are on a much firmer footing, but the e-mini S&P still trades shy of the post-payrolls high at 4549.50.
  • Seems markets have opted to look through near-term Delta disruption in Friday's NFP release, focusing instead on the solid underlying earnings data, keeping those of a more hawkish lean on the Fed with a solid argument to progress with a taper this year.
  • Nonetheless, some sell-side analysts are noting Friday's release could slow the Fed's progress - or at least prompt some FOMC members to flag that the policy approach remains flexible enough to face off near-term uncertainty.
  • This week's highlights are the RBA & ECB rate decisions, Chinese trade balance & inflation, Canadian jobs data and US PPI - none of which are today. Newly minted BoE MPC member Mann speaks later today - although wires have already released a handful of her comments on inflation, which were non-BoE specific.