You cannot hold the US greenback down

The US dollar is rebounding after a tough start to the week.

It comes as the Bessent-bounce unwinds. The bond and stock markets started the day thrilled with the pick of the new Treasury Secretary but stocks have faded with the S&P 500 up 17 points after rising as much as 50. Treasury yields remain 6-12 bps lower but are off the extremes.

The biggest move in the past half-hour is in the US dollar. It’s making headway right across the board, particularly against the commodity currencies, which are now in negative territory. I wouldn’t take my eye off China as part of this move, the MCHI ETF is now down 0.5% on the day.

USD/CAD is back above 1.40.

The euro and pound are down about 50 pips from the best levels of the day, though both are still in positive territory.

Mixed in with these moves are conflicting reports on an Israel-Lebanon ceasefire but the credible ones point to the announcement of a ceasefire tomorrow.