Market Brief, North America

Month- and quarter-end rebalancing flows are driving the dollar down against most of its major counterparts this morning, providing a modicum of relief across a range of asset classes. S&P 500 and Nasdaq futures are edging higher after tumbling yesterday on a rotation out of technology sector stocks, Treasury yields are up almost imperceptibly, and the commodity complex is experiencing a mild bout of mean reversion. The Mexican peso is grinding higher after carry traders piled back in during yesterday’s session, seizing on wide rate differentials and falling volatility expectations to drive the exchange rate to a circa-1.4-percent gain. Investors...

Currency traders are on edge ahead of a series of event risks that could trigger renewed volatility in foreign exchange markets. The dollar is inching lower after last week brought confirmation of a weakening in retail sales, along with an unexpected increase in jobless claims during the June non-farm payrolls survey period. Recent data has shown clear evidence of slowing momentum in the US economy, but the greenback has continued to win the “cleanest dirty shirt” contest, emerging largely unscathed as other major currencies have come under selling pressure. Friday’s ‘triple witching’ session left the major equity indices unharmed, but...