Big swings hit the market as the dollar sags
The early US dollar strength is reversing and commodities and value stocks are jumping.
It's not clear what's behind the reversal but there are some stark moves. The Russell 2000 is up 1.3% with the Nasdaq flat.
That kind of broadening out is something the bulls wanted to see but it's also quarter-end so there could be flow-related drivers.
In FX, the dollar has given back some gains and some of that is via commodity currencies and that makes sense as oil catches a bid. USD/CAD is now below where it was before the US GDP and jobless claims data.
![USDCAD shor](https://s3.tradingview.com/news/image/forexlive:0b7641db5094b-5264a97c8e65333da9067ecf1621af6e-resized.jpeg)
Gold is also reversing after falling to the lowest since May. There's a solid correlation between 5-year US yields and gold but what hasn't changed today is that bond yields are still at the highs of the day, with the 5y up 15 bps.
![Gold 15 mins](https://s3.tradingview.com/news/image/forexlive:0b7641db5094b-bcd66d5f15bf8871aac70650654249ab-resized.jpeg)