Headlines:

Markets:

  • AUD leads, JPY lags on the day
  • European equities mixed; S&P 500 futures up 0.3%
  • US 10-year yields up 3 bps to 2.875%
  • Gold down 0.4% to $1,830.05
  • WTI crude up 0.9% to $115.71
  • Bitcoin down 0.7% to $31,583

Welcome to start of June trading. The market is looking to sort out its feet as we get things going in the new month but we are carrying over some mixed themes from the start of the week.

The dollar is holding steady for the most part, keeping a modest advance against the euro, pound, and franc. The greenback is seen recovering some light ground after having fallen in the past two weeks, retracing its strong surge higher from April to early May.

USD/JPY was the most notable mover again though, rising as bonds were sold off again. The return of the jump in yields this week is helping to underpin the pair, moving up from 129.10 to 129.60 on the session.

Meanwhile, the dollar saw modest gains with EUR/USD down 0.3% to 1.0705 and hovering around 1.0710-20 levels for the most part in European morning trade. GBP/USD is also marked lower, slipping from 1.2590 to 1.2560 on the session.

The aussie is a resilient performer, with AUD/USD moving up from 0.7175 to near 0.7200 with large option expiries at around 0.7175 helping to keep price action more anchored around that level.

Elsewhere, equities are keeping more mixed but US futures are gaining some ground with S&P 500 futures seen up 0.3%. Dow futures are leading the way, up 0.5% on the day as value stocks gain amid the rise in bond yields.

Inflation remains a key focus as the market tries to sort through the list of narratives in play at the moment. The Bank of Canada meeting will also be a key risk event coming up later in the day.