Headlines:
Markets:
- USD and JPY lead, AUD lags on the day
- European equities mildly lower; S&P 500 futures up 0.1%
- US 10-year yields down 1 bps to 4.346%
- Gold down 0.1% to $2,382.71
- WTI crude up 0.1% to $78.70
- Bitcoin up 0.3% to $66,181
There was no post-CPI follow through as markets took on a more tentative mood in European morning trade.
The dollar is sitting a little higher on the day, helped by a nudge higher in Treasury yields. 10-year yields fell to 4.31% early on but are now pushing back up above 4.34%, holding above its 200-day moving average of 4.33%. It’s a key juncture for bonds, as traders wait on the US weekly jobless claims next.
USD/JPY in particular recovered by 100 pips in a move from 153.90 to 154.90 currently. Meanwhile, EUR/USD and GBP/USD are both down 0.2% to 1.0864 and 1.2655 respectively.
As risk trades also did not see any follow through, the commodity currencies are also feeling a bit more shy for now. AUD/USD is down 0.3% to 0.6670, not helped by a softer Australian jobs report earlier. USD/CAD is up 0.2% to 1.3633, steadily gaining from a low of 1.3590 earlier in the day.
In the equities space, European indices are more tentative while US futures are also sitting little changed. That’s not helping much with the overall mood as we look to the session ahead.
It’s now over to see if the weekly jobless claims will spring up any surprises or if we are on the verge of a turnaround Thursday moment.
