Headlines:
- The nerves are kicking in again in the equities space
- USD/JPY within touching distance of 150 as higher yields continue to pave the way
- AUD/USD stays under pressure as RBA stays on the sidelines
- Recent pace of yen fall makes intervention less likely - former top currency diplomat
- ECB's Lane: Progress to 2% inflation won't be as quick as to 4%
- ECB's Lane: The key is to maintain rates at this level for as long as needed
- ECB's Simkus: Inflation is on its way down
- Switzerland September CPI +1.7% vs +1.8% y/y expected
Markets:
- USD leads, AUD lags on the day
- European equities lower; S&P 500 futures down 0.3%
- US 10-year yields up 4.6 bps to 4.730%
- Gold down 0.2% to $1,824.38
- WTI crude down 0.5% to $88.38
- Bitcoin down 1.1% to $27,541
There wasn't much in terms of headlines during the session as the focus stays on the bond market. Treasury yields are running higher once again and that is leading to a further bid in the US dollar, with USD/JPY sitting within a whisker of touching the 150 mark.
The greenback held firmer throughout with EUR/USD hovering near its lowest since December last year at 1.0460-70 levels. The antipodeans are the laggards, with AUD/USD down 1.0% to touch 0.6300 after the RBA left the cash rate unchanged in today's policy decision.
A turn lower in the risk mood, similar to yesterday, is not helping as equities hit the skids after a decent start to the session. S&P 500 futures were up 0.2% at one point but are seen down over 0.3% on the day at the lows. European indices are also back in the red as the jitters are resurfacing amid further selling in the bond market as well.
It's back to the familiar theme for broader markets, continuing the trend that we have been seeing since mid-September.
