The dollar is down across the board as the retreat in Treasury yields since yesterday is weighing. USD/JPY in particular is down another 0.4% to 148.45 as the BOJ is able to breathe a sigh of relief after having intervened to hammer down the pair at 150.00 on Tuesday. Equities also saw some added relief on the week but we're not out of the woods just yet.
The main focus stays on the bond market and even with the 17 bps drop in 10-year Treasury yields yesterday, it is still up some ~14 bps on the week to 4.71% currently.
But with the US jobs report coming up tomorrow, traders and investors are likely to stay more cautious before deciding what to make of the volatile mess in markets right now.
For today, there will be some light releases coming up in European trading but they will just help to move things along in the session ahead. The key thing to watch for the time being is still price action in the bond market and how that spills over to other markets.
0600 GMT - Germany August trade balance data
0730 GMT - Germany September construction PMI
0830 GMT - UK September construction PMI
1130 GMT - US September Challenger layoffs, job cuts
That's all for the session ahead. I wish you all the best of days to come and good luck with your trading! Stay safe out there.
