Headlines:
Markets:
- JPY leads, GBP lags on the day
- European equities mixed; S&P 500 futures down 0.2%
- US 10-year yields down 3.4 bps to 4.658%
- Gold up 0.4% to $2,673.22
- WTI crude up 0.3% to $73.56
- Bitcoin down 1.1% to $93,409
The dollar is holding firmer at the balance in European morning trade, only down against the yen on the day. Meanwhile, the major laggard is the pound as it continues to suffer in the early stages of the year.
Cable slumped to hit 1.2300 early on before falling further to a low of 1.2240 before recovering slightly to 1.2275 now. The pair is still down 0.7% on the day though.
Elsewhere, the dollar is holding slight gains despite lower bond yields. The slight bounce in bonds is helping to pin USD/JPY back down as it drops back under 158.00 to 157.70 currently.
In other markets, equities remain more tentative in general but European indices are continuing to hold modest gains to start the new year. As for commodities, gold continues to shine brightly as it creeps up above $2,670 to its highest in nearly four weeks. $2,700 next?
With it being a pseudo market holiday in the US, there won’t be too much for traders to really work with. All the focus and attention instead now turns to the US jobs report tomorrow. So, that will be the key risk event for broader markets to round off the trading week.