Headlines:

Markets:

CAD leads, GBP lags on the dayEuropean equities higher, but DAX down on SAP, Deutsche; S&P 500 futures up 0.2%US 10-year yields flat at 4.249%Gold up 2.5% to $5,538WTI crude oil up 2.3% to $64.70Bitcoin down 1.6% to $87,878

It was a relatively quieter and calmer session, with markets settling down after the eventful happenings yesterday. The dollar was beaten down earlier in the day with yesterday’s respite seemingly short-lived. However, the greenback is recovering some poise today to keep nearly little changed with some profit-taking seen in gold and silver as well.

EUR/USD is facing some added resistance now near 1.2000 after ECB policymakers stepped in with some verbal interjections. The pair is flat at 1.1950 with the high earlier touching 1.1996. Meanwhile, USD/JPY is also flattish at 153.35 after holding closer to 153.00 at the start of the session. Tokyo intervention risks remain heightened, so do keep a watchful eye on this one.

Besides that, USD/CHF also bounced back from 0.7650 to be flat at 0.7680 now and AUD/USD is only marginally up by 0.1% to 0.7047 – down from a high of 0.7095 earlier in the day.

All of this comes as we see precious metals cool from the highs seen in the early hours of Europe. Gold moved up to near $5,600 again before the profit-taking hit and we saw a drop to $5,470 before coming back up to $5,538 again now. Meanwhile, silver hit fresh records of just above $120 before dropping back to $115 levels and then coming back up now to hold near the highs.

The volatility swings continue in the precious metals space and even if it may seem calmer today, conditions are still much more volatile than before.

Elsewhere, European equities are showing signs of a rebound after the drop yesterday. The CAC 40 index is up 0.5% with luxury stocks steadying after yesterday’s heavy selling on disappointing LVMH earnings. The DAX index is the only laggard with some red flags from SAP earnings, causing shares to be down by 11% – its steepest drop since 2020.

As for US futures, tech shares are holding firmer at the balance after key earnings yesterday from Microsoft, Meta, and Tesla. S&P 500 futures and Nasdaq futures are both up 0.2% on the day.

While things are settling down, we’re far from done with the week. There’s still plenty to focus on as seen below: