Headlines:Markets:GBP leads, JPY lags on the dayEuropean equities higher; S&P 500 futures up 0.4%US 10-year yields up 6.8 bps to 2.820%Gold flat a
Headlines:
Markets:
- GBP leads, JPY lags on the day
- European equities higher; S&P 500 futures up 0.4%
- US 10-year yields up 6.8 bps to 2.820%
- Gold flat at $1,726.73
- WTI crude up 1.1% to $95.75
- Bitcoin down 2.8% to $21,966
Welcome to Fed week.
It’s all about the anticipation towards the FOMC meeting now and it will be tough to really gather much conviction in markets in the run up to Wednesday. The dollar was steadier as equities were more tentative early on but as risk sentiment improved slightly, we are seeing the dollar and yen soften with bond yields also pulling higher to start the new week.
EUR/USD got a slight nudge higher from ECB policymaker Kazaks’ comments, suggesting that the central bank is open towards a “big” rate hike in September. The pair moved up from 1.0195 to 1.0220 before extending gains to 1.0257 as the dollar eased.
GBP/USD was a notable gainer, moving up from 1.1980 to 1.2080 as buyers look to try and keep a firm break above last week’s highs on top of the 1.2000 level.
Meanwhile, USD/JPY steadied around 136.30-50 for the most part before jumping to 136.65 at the moment – the highs for the day – as bond yields also pull higher following last week’s drop.
Elsewhere, commodity currencies are posting modest gains with USD/CAD down 0.4% to 1.2864 and AUD/USD up 0.4% to 0.6953 currently. That said, key levels are still intact for the dollar as outlined in the first linked post and that may hold until we get to the Fed later in the week.
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