Headlines:

Markets:

  • USD leads, EUR lags on the day
  • European equities lower; S&P 500 futures down 0.3%
  • US 10-year yields down 6 bps to 2.76%
  • Gold down 0.1% to $1,717.41
  • WTI crude up 1.6% to $98.27
  • Bitcoin down 4.8% to $21,106

There weren't much key headlines on the session as the dollar stood its ground while bonds were bid once again with all eyes on the Fed tomorrow. The jitters in Europe continues to reverberate as the region is set to face a gas crunch, even if there was a deal reached for emergency gas cuts during the winter. Do take note that the deal is a watered down version of the original proposal, so it is rather mehhhh.

The euro is the worst performer in trading today as the problems continue to mount for the single currency, with EUR/USD falling from 1.0220 to 1.0130. The pound also dropped as the dollar firmed, with cable falling from 1.2060 to 1.1975 during the session.

As risk sentiment remains rather sluggish, commodity currencies also retreated with USD/CAD moving from 1.2820 to 1.2880 while AUD/USD slumped from a high of 0.6983 in Asia trading to 0.6925 in European morning trade.

It looks like the dollar is standing its ground as we await the Fed tomorrow. It is going to be a big one for markets with bond yields looking to potentially crack lower and the greenback managing to keep a hold of key technical levels after the drop last week.