US Dollar (USD) recovered some of yesterday’s loss, S&P 500 futures are down after the underlying index hit a record high yesterday, and Treasury yields are up slightly. Markets are digesting ECB guidance and US CPI data, BBH FX analysts report.
Yesterday's US labour market figures showed that the labour market is cooling down slowly: job vacancies fell more sharply than expected in July, while layoffs increased more than anticipated, Commerzbank's FX analyst Michael Pfister notes.
The global bond market rout stretched into a second day, weighing on equities, boosting gold prices to new highs, and lifting US Dollar (USD) against most currencies. The bond market sell-off reflects genuine concerns over fiscal profligacy across Europe and the US, BBH FX analysts report.