• US indices finished yesterday’s trading mixed after a volatile session. S&P 500 dropped 0.21%, Dow Jones moved 0.43% lower while Nasdaq gained 0.25% and Russell 2000 moved 0.40% higher
  • US 10-year yields briefly breached 4% yesterday but have pulled back to 3.97% since
  • US dollar gained after White House official Brian Deese said he does not expect major economies to agree on an accord aimed at weakening USD as it was the case in 1985
  • Indices from Asia-Pacific slumped during the session today. Nikkei dropped 2%, S&P/ASX 200 moved 0.7% lower while Kospi traded 2.7% down. Indices from China traded 0.2-2.5% lower
  • DAX futures point to a lower opening of the European cash session today
  • US Treasury Secretary Yellen said that financial markets are operating normally and that she does not see any liquidity issues in the markets
  • Moody’s said that new UK fiscal measures are credit negative as tax cuts are massive but lack funding
  • According to BoJ minutes, BoJ members see fears of global slowdown intensifying and price increases in Japan broadening. Members see need to carefully watch impact on rapid FX moves on inflation
  • Goldman Sachs expects Brent price to average $100 in Q4 2022, down from previous forecast of $125. Bank also expects average Brent price in 2023 at $108, also down from $125 previously expected
  • Australian retail sales increased 0.6% MoM in August (exp. 0.5% MoM)
  • API report pointed to a 4.15 million barrel build in US oil inventories (exp. +0.3 mb)
  • Cryptocurrencies are pulling back. Bitcoin trades 1.1% lower, Ethereum drops 2.8% while Ripple trades 4% lower
  • Commodities trade lower amid USD strengthening. Brent and WTI trade around 0.7% lower. Gold drops 0.3% while silver trades 1.2% down
  • USD and JPY are the best performing major currencies while NZD and AUD lag the most

EURUSD painted a fresh 20-year low near 0.9550 as the USD rally resumed.

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