Headlines:
Markets:
- USD leads, AUD lags on the day
- European equities lower; S&P 500 futures flat
- US 10-year yields up 5.2 bps to 4.067%
- Gold down 0.2% to $1,661.95
- WTI crude up 0.3% to $88.20
- Bitcoin down 0.7% to $20,604
It was a quiet session for the most part as markets gear towards the ECB policy meeting decision later at 1215 GMT.
After a rally earlier in the week, bonds are losing some ground today with yields pushing higher. In turn, that is pinning equities lower while the dollar is benefiting from the move as it finds firmer footing on the week.
10-year Treasury yields are up over 5 bps to 4.067% with the high during the session hitting 4.086%. That is putting pressure on Nasdaq futures and keeping S&P 500 futures more flattish on the day.
EUR/USD ran up against its 100-day moving average at 1.0087 in Asia trading, before falling to around 1.0030 in European trading as a firmer dollar also helped to nudge the pair lower.
GBP/USD is also pressed down from 1.1630 to 1.1550 during the session, though buyers are still in a good spot after the break above 1.1500 yesterday. Meanwhile, USD/JPY was dragged down to 145.10 early on before rebounding strongly to keep at the highs now near 146.60 as the pair also recovered alongside the firmer dollar.
The antipodeans are the notable laggards with AUD/USD down 0.7% to 0.6450 after a run up against 0.6500 earlier in the day. Falling iron ore prices also isn’t helping with aussie sentiment today, alongside the more sluggish risk mood. NZD/USD is down 0.5% to test 0.5800 after having hit a high of 0.5870 at the end of the Asia Pacific session.
It’s all over to the ECB now to determine the next steps for markets.
