The market continues to digest the post-Fed musings and a extra hawkish communique yesterday is motive sufficient for the greenback to tug increased in buying and selling as we speak once more. The dollar is operating to contemporary highs on the day now in European buying and selling, with GBP/USD slumping by 1% to 1.1270 presently:
The pair is shedding altitude after its current run up above 1.1500 and the most recent drop now places into focus help nearer to 1.1200, earlier than we begin speaking about 1.1000 once more. The BOE coverage assembly later as we speak will likely be one other key threat occasion to be aware about for the pair.
In the meantime, EUR/USD is down 0.5% to 0.9765 and shutting in on key help as famous earlier here. USD/JPY is up 0.2% to 148.15 as patrons proceed to maintain the religion however are nonetheless being challenged considerably by Japanese officers, who’re attempting to take care of their composure in limiting any upside rush within the pair.
Elsewhere, USD/CHF is buying and selling up 0.8% to above 1.0100 whereas AUD/USD is down 0.5% to 0.6310, poised for a sixth straight day of losses. The latter appears to be headed in the direction of one other check of 0.6200 once more subsequent:
Because the greenback corporations, we’re seeing equities maintain extra sluggish and bond yields maintain increased on the session. S&P 500 futures are down 8 factors, or 0.2%, whereas European indices are down roughly 1% throughout the board. 10-year Treasury yields are nonetheless up slightly over 5 bps to 4.157% in the intervening time.