Rates as of 0500 GMT
Im now using the Citi nominal tradeweighted indices, which measure currency performance against a basket of trading partners currencies with export, import, and thirdmarket competitiveness weights. They measure each currencys performance against the currencies of 11 advanced economies.
Market Recap
A classic riskon day in the FX markets, with the three commodity currencies higher and the safehaven USD and JPY at the bottom. The higher CHF was the only currency to disturb this neat pattern.
Although global equity markets were mixed, the FX move matched that in the bond market, where bond yields moved higher in the major markets. Tenyear US Treasuries were up as much as 7.8bps intraday yesterday, although they ended the session up a more moderate 2.5 bps at 1.634. The move was driven by higher real rates as inflation expectations barely moved. There was a similarly large move in Europe, with yields on 10year German Bunds up 3.8bps to 0.19, the first time in over a year that theyve closed above 0.20. Tenyear French yields 4.4bps also closed at a oneyear high.
At the same time, gold and silver fell as interest rates moved up and there was less perceived need for a safe haven.
CAD was the best performer of the day. It followed oil higher but continued to gain even after oil started to reverse. The currency has been benefiting from several factors good domestic performance, as shown by Wednesdays betterthanexpected Canada retail sales for…