The dollar is keeping slightly softer on the day and that is providing some relief to broader market sentiment ahead of European morning trade. The pound remains a focus point after the BOE sort of underwhelmed with their special statement yesterday, ruling out an inter-meeting rate hike to try and calm markets.
UK bonds imploded nonetheless and while the pound salvaged part of the wreckage towards the end, the technical predicament remains dire for the currency - even if it is holding up by 0.8% today to 1.0770 against the dollar.
EUR/USD is up 0.3% to 0.9635 while USD/JPY is down 0.2% to 144.50 on the day so far. The latter will also be a focus point as it is inching towards the 145.00 mark, where we might see Japanese authorities step up warnings after having intervened in the market last week just above that.
The bond market will also be one to watch with 10-year Treasury yields nearing 4% as the rout continues to play out. UK gilts will also come under heavy scrutiny after the remarkable plunge (shoot higher in yields) since Thursday last week. 10-year yields were last seen at 4.25% yesterday and for some context, it was only 3.31% on Wednesday last week.
0800 GMT - Eurozone August M3 money supply data
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.
