Headlines:

Markets:

  • AUD and NZD lead, USD lags on the day
  • European equities mixed; S&P 500 futures up 0.2%
  • US 10-year yields flat at 4.129%
  • Gold up 0.6% to $1,637.73
  • WTI crude up 1.7% to $86.98
  • Bitcoin flat at $19,201

In the transition from Asia to Europe, the dollar fell as China is said to consider cutting its inbound COVID-19 quarantine period from 10 days to 7 days. It is perhaps the beginning of the end of the country's zero-Covid policy but markets quickly moved on with the dollar steadying itself as we get into European morning trade.

USD/JPY then moved up to hit 150.00 for the first time since August 1990 and saw volatile spikes in and around the figure level. Ultimately, the pair settled around 149.80-90 before the a bit of a recovery in broader market sentiment helped to see the pair hug 149.70-80 levels the moment.

The dollar was mixed throughout, advancing against the pound as well as against the commodity currencies with risk sentiment looking sluggish initially. But that is turning in the past hour as risk trades pick up a little with bond yields turning - at least for the moment.

GBP/USD moved up from 1.1171 to 1.1240 and is now up 0.1% at 1.1220 levels. Meanwhile, EUR/USD nudged higher from 0.9775 to 0.9828 and is holding closer to 0.9800 currently with large expiries seen at the figure level.

The aussie was dragged lower early on after a poor Australian jobs report, with AUD/USD down to 0.6230 before picking itself back up now to hold just above 0.6300 as equities hold up. This comes on the turn in the risk mood, with S&P 500 futures now being up 0.2% after having been down by as much as 0.5% early on.

10-year Treasury yields were up 4 bps to 4.17% early on and that kept some pressure on equities before turning lower to be down by 2 bps at 4.11%. That sparked a bit of a recovery in broader sentiment but yields are now back up by 2 bps to 4.13%.

In other news, the UK political drama carries on as Liz Truss is said to call for a meeting with 1922 Committee chief, Sir Graham Brady, to "check on the temperature" as almost everyone and anyone is calling for her head.