Headlines:
Markets:
- GBP leads, JPY lags on the day
- European equities lower; S&P 500 futures down 0.4%
- US 10-year yields up 2.3 bps to 3.972%
- Gold down 0.7% to $2,045.48
- WTI crude up 0.7% to $70.85
- Bitcoin down 5.8% to $42,555
The session started off quietly before traders resumed the price action from yesterday. The dollar was bid across the board while equities sagged, with bond yields sitting a touch higher on the day. The bid in the greenback also led to a fall in gold and as risk trades soured, Bitcoin also took a quick hit from $45,000 to a low of $40,625 before a light bounce to $42,000 levels now.
USD/JPY continued to retrace higher in a push to near 143.00 while EUR/USD is down another 0.2% to 1.0920 currently. USD/CHF is also keeping a modest rebound this week, up another 0.4% to 0.8530.
Commodity currencies are also struggling again with AUD/USD in particular down 0.4% to 0.6730 as risk trades are on the defensive.
S&P 500 futures are now down 0.4% with Nasdaq futures down 0.6%, and that is leading a bigger decline in European stocks as well on the day. Major indices in Europe are now down over 1% as the squeeze gathers pace to start the new year.
In other markets, gold also stumbled from $2,065 to $2,045 at the moment while oil is in a bit of a wrestling match once again in and around its 200-week moving average at $70.84.