• NZD leads, USD lags on the day
  • European equities higher; S&P 500 futures up 1.3%
  • US 10-year yields down 7 bps to 3.811%
  • Gold up 1.1% to $1,639.73
  • WTI crude up 1.2% to $77.65
  • Bitcoin up 5.8% to $20,215

We're seeing a bit of a breather in markets as the broad selling everywhere hits pause for a bit of a correction. The dollar is lower as it retraces a small part of its recent gains and the pound capitalised on that, with GBP/USD climbing up over 1% on the day as the rout in gilts also encounter a pause. That said, cable is still only settling just above 1.0800 at the moment. Pain. 🤕

EUR/USD is up 0.4% to 0.9645 with the high earlier touching 0.9670 but the gains aren't anything to shout about as the single currency is still reeling after having hit a 20-year low against the dollar. Meanwhile, USD/JPY is down 0.3% to 144.30 but buyers are still in a good spot to try and contest the 145.00 mark again - where the BOJ/MOF intervened last week.

Commodity currencies are holding higher as the more positive risk mood today is also helping. That said, the moves pale in comparison to the recent selling with USD/CAD at 1.3675 even though down 0.4% and AUD/USD near 0.6500 even with a 0.6% advance. NZD/USD is a decent mover, up 1.2% to 0.5705 but that comes after having hit its lowest levels since the early days of the pandemic yesterday.

Equities are finding some relief from the recent selloff but I would say a lot of this can be attributed to calmer tones in the bond market as the heavy rout stalls for the time being. 10-year gilt yields are down 12 bps to 4.13% while 10-year Treasury yields are down 7 bps to 3.81% and that is providing broader markets with some reprieve - at least for now.

European indices and US futures are showing a modest bounce but it doesn't take away from the downside pressure in recent weeks. And as is the case in familiar times such as these, it doesn't take much for sentiment to go cowering again.