Headlines:

Markets:

  • GBP leads, AUD and NZD lag on the day
  • European equities higher; S&P 500 futures up 0.8%
  • US 10-year yields down 5 bps to 4.16%
  • Gold down 0.4% to $1,649.73
  • WTI crude down 1.0% to $84.18
  • Bitcoin up 1.3% to $19,428

Friday's recovery in broader market sentiment is continuing to today, although not without some chop during European morning trade. Equities were higher initially while bond yields retreated before all of that reversed in the opening two hours, before markets turned again as we start to move towards North American trading.

The dollar held firm throughout though as another round of intervention by Japan failed to amount to anything in Asia trading. USD/JPY was brought down from 149.60 to 145.48 before holding around 148.90 to 149.20 in the European session. The pair then ran into another quick dip to 148.26 before keeping just below 149.00 currently - still up 0.8% on the day.

EUR/USD remains pinned down by around 0.2% to 0.9835 with the low earlier hitting 0.9808 as euro area PMI data reaffirmed a further economic contraction in the region to start Q4.

Meanwhile, GBP/USD opened with a gap higher earlier before seeing said gains erased in a fall from 1.1380 to 1.1275 before holding around 1.1310 at the moment. The pound is benefiting slightly from political sentiment as Rishi Sunak is now the frontrunner to become the next UK prime minister as Boris Johnson bows out.

Despite the more choppy sentiment, commodity currencies are struggling on the day after Friday's advance. USD/CAD is up 0.4% to 1.3700 but off the earlier high of 1.3754, after running into its 100-hour moving average at 1.3744. AUD/USD is down 1.2% to 0.6300 with the low earlier touching 0.6273 and running into its own 200-hour moving average at 0.6285 before bouncing.

It's a bit of a mixed start to the week as all eyes turn towards key central bank meetings in the coming days and next week as well. Strap yourselves in. It is going to be a bumpy ride.