Dollar loses momentum on fading geopolitical risks, Canadian dollar leaps on strong jobs
A nascent recovery in the dollar is stalling out this morning as geopolitical risks in the Middle East, Japan, and the euro area show signs of easing. The greenback is down -0.2 percent against a basket of its major counterparts, Treasury yields are edging lower, and US equity indices are setting up for a modestly-positive open. Oil prices are slipping as markets remain oversupplied and risk premia evaporate in the face of a potential peace agreement between Israel and Hamas, and terms of trade indices—which measure the ratio of export prices to import prices—are turning against the US dollar. The...