Forexlive Americas FX news: Bullard, Bostic, Barkin then a rebound

Markets:

• Gold down $14 to $1,979
• The US 10-year rate down 2.8 basis points to 3.37%
• WTI crude oil down 64 cents to $69.32
• S&P 500 up 22 points to 3971. Over the week up 1.4%
• Yen leading, NZD lagging

The mood was poor at the start of North American trading as banking concerns – particularly Deutsche Bank – haunted the market. US regional equities were also under pressure and bonds had strong supply. This had led to the buying of US dollars and yen as safe havens, as US 2-year yields now hit post-SVB lows.

The mood changed as speakers and Fed data unfolded. PMIs in particular have served as a reminder that much of the US economic data has surprised on the upside this year and that there are no concrete signs of a slowdown; if anything, it’s the opposite.

This led to bond selling and the dollar began to slowly pare its gains off the JPY. Stocks turned more decisively later in the day, once again trailing regional bank stocks. The news that Yellen was meeting with regulators was welcomed, but could also have fueled expectations for action over the weekend. This could lead to disappointment on Monday if nothing happens.

All in all, it’s been a volatile week and there won’t be too many disappointments to see the weekend arrive. The week’s machinations from the Fed and the incessant banking news leave the market needing an opportunity to digest.

The weekly charts show a nice rally for the yen, but it stalled today and started to reverse. This is where the focus will stay.