The New York session was shaped by a confluence of U.S. releases that gave conflicting signals. The consumer confidence index climbed to a three‑month high, suggesting households remain upbeat, while the ISM services PMI slipped below the 50‑point threshold, indicating a contraction in the services sector. Durable‑goods orders also fell, adding to concerns about manufacturing weakness. The mixed picture pushed Treasury yields lower and knocked the dollar off its earlier rally.
With the dollar on the back foot, commodity‑linked currencies outperformed. The Canadian dollar rose alongside a rebound in crude‑oil prices, underpinned by ongoing supply constraints in the Middle East. The Australian dollar advanced as copper extended its rally on renewed demand from China, while the Japanese yen softened as investors shifted back into higher‑yielding assets.
Equity markets embraced the risk‑on tone. The S&P 500 and Nasdaq posted modest gains, with technology stocks leading the advance. The decline in yields also lifted the bond market, while European banking shares saw modest inflows, though they lagged the U.S. rally.
Commodities were mixed. Brent crude climbed on geopolitical supply concerns, supporting the CAD, while gold retreated as real yields held steady. Copper’s climb to multi‑month highs bolstered the AUD, reinforcing the commodity‑currency theme.
Digital assets were relatively stable, with bitcoin holding near recent levels and ether gaining ground on speculation of upcoming network upgrades.
This note is for informational purposes only and does not constitute investment advice. Market conditions can change rapidly; trading foreign exchange, equities, commodities and digital assets carries significant risk and may not be suitable for all investors.