Few moves after the dollar retraces earlier gains
The dollar started the day brightly in Asia, buoyed by the jobs report on Friday. Wages were the big reason why the dollar gained, as it signals that tighter labour market conditions are starting look like it is translating to higher inflationary pressures as well.
But as we reached mid-day in Asia, those gains were all but wiped out and the dollar is lingering at the bottom of the major bloc along with the euro.
The bigger story in markets today has been in the equities market - where we're seeing yet another major wipe-out following Friday's poor performance on Wall Street. That's feeding into risk sentiment as well, as we see the yen and the swissie being the top performers in the currency space so far.
The funny thing here is that a shift away from equities is what could help stem the bleed in the equities market. As stocks get routed, safe haven play may see investors start to turn to bonds - and that could incidentally help stop the rout in the bond market, which is one of the contributing factors to what is causing equities to spiral downwards in the first place.
