Headlines:

Markets:

  • USD leads, AUD lags on the day
  • European equities lower; S&P 500 futures down 0.8%
  • US 10-year yields up 3.3 bps to 1.841%
  • Gold down 0.4% to $1,789.91
  • WTI up 0.7% to $87.17
  • Bitcoin up 0.3% to $36,280

Here we go again. The dollar was the main beneficiary in European morning trade as the post-Fed momentum continues to keep up.

Meanwhile, the mood in equities was initially more positive but even then, there was a sense of trepidation looming and that quickly turned into losses now ahead of US trading.

European indices are down by nearly 2% and US futures have turned early gains into modest losses now on the session.

In turn, that is keeping the dollar bid across the board as soaring Treasury yields are also a factor at play.

USD/JPY moved up from 115.35 to 115.65 on the session amid higher yields while the dollar kept a light advance against both the euro and pound. Elsewhere, commodity currencies are the laggards in trading so far.

AUD/USD broke below 0.7000 and is keeping lower as such - down 0.8% to 0.6975 currently. Meanwhile, NZD/USD is down 0.6% to 0.6540 as the downside push after the break below 0.6700 continues.

It's looking like yet another day where equities might see some volatile moves when Wall Street enters the fray later. But on the balance of things, it wouldn't be wrong to have a premonition that things may not play out well for dip buyers.