Headlines:
- Dollar pushes higher in European morning trade
- Chinese onshore yuan sees weakest daily close against the dollar in two years
- German cabinet approves energy-saving measures
- Japan to relax border controls on COVID-19 starting from 7 September
- US MBA mortgage applications w.e. 19 August -1.2% vs -2.3% prior
Markets:
- USD leads, NZD lags on the day
- European equities little changed; S&P 500 futures flat
- US 10-year yields up 1.1 bps to 3.061%
- Gold down 0.3% to $1,742.24
- WTI crude up 1.1% to $94.80
- Bitcoin down 0.3% to $21,412
It was a session bereft of major headlines and risk tones were also largely more tepid. But the dollar moved from strength to strength, as it regained its poise after a bit of a stumble in trading yesterday.
Soaring energy prices continue to do a number on the euro, with the single currency falling from 0.9950 to 0.9920 against the dollar. Meanwhile, GBP/USD also eased from 1.1800 to 1.1770 during the session with USD/JPY bouncing from 136.20 to 136.80 at the moment as bond yields hold up as well.
Equities aren't providing much for traders to work with, so this seems very much like positioning flows ahead of Jackson Hole as markets seem content to stick with the narrative from the start of the week.
Commodity currencies also eased lower against the dollar, with USD/CAD inching up towards 1.3000 and AUD/USD falling back just under 0.6900 on the day.
