It’s a calmer start to proceedings but the dollar might find itself in the driver’s seat soon enough once again. Equities are softening to start European trading, with S&P 500 futures now down 17 points, or 0.4%, on the day. The bond market is still relatively calm but with the Chinese yuan also on the brink, the signals are working in favour of the dollar at the moment.
GBP/USD has now dropped by 0.3% to a fresh three-month low at 1.2467, eyeing the 200-day moving average (blue line) at 1.2423 next:
GBP/USD daily chart
Elsewhere, EUR/USD is slightly softer by 0.15% at 1.0711 while USD/JPY is little changed and down slightly by 0.12% at 147.48. The latter is still largely driven by bond market developments and so far, 10-year yields in the US are flat at 4.289% on the day.