Gold Rebounds as US Dollar Retreat Continues

Moody’s downgrade of its US credit rating last weekend continues to impact bond and currency trading. The USD remains in retreat today enabling Gold to rally 0.8% and regain $3,300/oz. Meanwhile, other major currencies, including the Loonie, Pound, Euro, Aussie and Yen, are up 0.2%-0.6% today. Commodities are also rallying with Copper up 1.2% and Crude Oil up 1.5%. The US 10-year treasury note yield is on the rise again, trading back up above 4.50%.

US index futures continue to digest recent gains falling 0.5%-0.7% this morning after yesterday’s US index losses of 0.2%-0.4% snapped a multi-day winning streak. European trading is quiet so far with the Dax down 0.2% and the FTSE up 0.1%.

Retailer earnings and the reaction to them are mixed today. Target missed badly ($1.30 vs street $1.62) and is down 5.9% premarket.  Lowes and TJX beat the street slightly and are mixed premarket, up 1.6% and down 1.7% respectively. Meanwhile, clothing company Canada Goose is up 12.2% premarket despite pulling guidance after crushing analyst EPS expectations ($0.33 vs street $0.23).

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