The dollar continues to run riot in the major currencies space, helped out by higher Treasury yields. It's been quite the straightforward message since the breakout in the bond market but it does offer quite a bit of food for thought: The US may be entering an era of higher yields but the rest of the world isn't
As we look towards European trading today, it's the same story once again as the dollar is sitting slightly higher with yields staying underpinned. 10-year Treasury yields are now looking to enter 4.70% territory and that is propping up the dollar while sinking the likes of gold and silver in the commodities space.
Tech stocks managed to salvage some pride yesterday but the overall equities space is in a rather subdued spot at the moment. S&P 500 futures are down 0.1% currently with European indices also struggling as they did yesterday.
There won't be much on the agenda in Europe today to shake things up with only Swiss inflation data in focus. That will keep traders and investors honed in on developments in the bond market and how that will continue to reverberate to other markets in general. For now, the verdict is that the dollar is in charge in FX so long as yields continue to stick to the trend.
0630 GMT - Switzerland September CPI figures
That's all for the session ahead. I wish you all the best of days to come and good luck with your trading! Stay safe out there.