Headlines:
- Dollar relatively steady so far on the session
- Treasury yields dip further as Middle East tensions linger
- Fed's Bowman: Interest rates may need to rise further
- ECB's Knot: Policy is in a good place now
- ECB's de Cos: Core inflation has turned a corner
- Eurozone consumers still see inflation higher for longer
- US MBA mortgage applications w.e. 6 October +0.6% vs -6.0% prior
- Germany September final CPI +4.5% vs +4.5% y/y prelim
Markets:
- CHF leads, NZD lags on the day
- European equities mostly higher; S&P 500 futures up 0.3%
- US 10-year yields down 9.5 bps to 4.560%
- Gold up 0.5% to $1,870.73
- WTI crude down 0.8% to $85.27
- Bitcoin down 0.7% to $27,200
It was a slow session for the most part as traders are largely waiting on key US data to come during the week. Today will feature the PPI report before we get to the main event tomorrow i.e. CPI report.
Major currencies are looking rather tentative and pushing and pulling within a narrow range. The dollar is keeping steadier overall despite a further plunge in Treasury yields on the day. 10-year yields are down nearly 10 bps now to 4.56% and after being roughed up early in European morning trade.
EUR/USD is flattish at 1.0600 while USD/JPY is little changed at 148.80 currently. The aussie and kiwi are lagging slightly but the softness can't really be attributed to the risk mood.
Overall risk sentiment is holding up, with US futures ticking a little higher amid the drop in bond yields. The only drag comes from Europe and that features French and luxury stocks after LVMH reported slower sales growth in Q3.
Besides that, there is little to work with but perhaps we'll get more affirmative action after the PPI report as Wall Street digests the continued fall in Treasury yields this week.