• AUD leads, CHF lags on the day
  • European equities lower; S&P 500 futures up 0.2%
  • US 10-year yields up 2.4 bps to 3.134%
  • Gold down 0.5% to $1,714.88
  • WTI crude down 2.8% to $89.10
  • Bitcoin up 1.7% to $20,310

It was a bit of a choppy day in markets in general but the focus in Europe was on consumer inflation data for August, in which we saw another record reading. The headline annual figure came in above 9% and that just puts more pressure on the ECB to act aggressively next week, though policymakers have already talked that up in the past few days.

Still, it won't do much comfort for the euro outlook with soaring energy prices continuing to be a problem with flows along the Nord Stream pipeline halted for the coming days and Gazprom also cutting off gas supplies to French utility, Engie, citing a payment dispute.

The dollar was initially softer but regained some poise during the session as the back and forth trading continues, with the main focus staying on Friday's US jobs report. Equities were higher to start the day but have seen gains evaporate with European indices keeping lower while US futures are mildly higher after having turned red briefly during the session.

EUR/USD fell from 1.0040 to 0.9975 before keeping closer to parity now, down 0.1% on the day. Cable stays softer after yesterday's drop with the pair down by 0.3% again to 1.1620. Meanwhile, USD/JPY is keeping steady around 138.50-70 levels through the day so far.

Commodity currencies are also little changed against the dollar, with the aussie and kiwi seeing early gains pared as the risk mood falters once again as we look towards US trading. AUD/USD was up to 0.6900 early on but is now up just 0.1% to 0.6850-60 levels.

As noted in the first linked post, there are quite a few developments in markets this week even as the focus stays on the US jobs report on Friday. Month-end trading will be something to watch out for in the session ahead before markets start to hone in on the main event at the end of this week.