Markets:
- Gold down $3 to $1625
- US 10-year yields up 1.7 bps to 4.14%
- WTI crude oil up 43-cents to $85.98
- S&P 500 futures down 25 points to 3695
- USD leads, NZD lags
For the second day, US earnings set the tone. This time it was Tesla with a miss on revenue. That sent shares down to $206 from $222 and threatening to break a series of lows near the big figure. Earnings from economic bellwether Alcoa also missed and that added to the sour mood.
Speaking of big figures, USD/JPY continues to press towards 150.00 with the pair touching 149.95. Suzuki offered the usual warnings but they had no effect. Notably though, there is some upwards pressure on JGB yields, putting the BOJ into the game ahead of next week’s meeting.
In terms of data, the Australian jobs report disappointed. That kicked off some selling in AUD/USD as the pair sagged to 0.6228, down 43 pips to a three day low. Full time jobs were better but not good enough to slow the US dollar.
Cable is also under some pressure as the new day begins. Every day is a marathon for Liz Truss at the moment as one problem after another arises. The politics are in such a state of flux anything is possible at any moment. Cable has edged back below 1.1200 and threatening yesterday’s intraday low of 1.1185.
