Headlines:

Markets:

  • EUR leads, JPY lags on the day
  • European equities lower; S&P 500 futures down 0.9%
  • US 10-year yields up 7 bps to 3.11%
  • Gold down 0.6% to $1,726.28
  • WTI crude up 0.3% to $93.37
  • Bitcoin down 4.0% to $19,811

The post-Jackson Hole theme is continuing to play out with the dollar firmer and equities on the retreat. The bond market was unamused at the end of last week but we are seeing more of a move today as yields scale higher. That is fitting with the message from central bank speakers since Powell's speech on Friday.

The dollar is maintaining a comfortable position though gains against the euro were erased with EUR/USD having dipped to a low of 0.9915 early on before climbing back up to near parity. That comes despite a continuation in the surge of energy prices in Europe, though money markets are pricing in a more aggressive ECB next week.

USD/JPY stays underpinned amid higher yields, with the pair briefly clipping 139.00 and is keeping around 138.50-70 levels now. GBP/USD looks poised for another leg lower with a drop to 1.1650 earlier before recovering to 1.1690, still down 0.4% on the day.

Risk trades stayed under pressure with US futures holding lower alongside European equities, so that is seeing USD/CAD keep above 1.3000 as buyers try to look to come up for air. Meanwhile, AUD/USD is pinned down by 0.3% to 0.6870 with sellers also in search of a stronger push to the downside.

It seems like markets are settling in after Jackson Hole but in the days ahead, if the moves are contained, we can expect some nervous anticipation ahead of the US jobs report on Friday.