Most EU indices traded lower yesterday, but the US ones ended in positive territory, despite the further inversion of the US Treasury yield curve. Risk appetite softened again during the Asian day today. In the FX sphere, from Tuesday’s main gainer, the pound was yesterday’s big loser among the G10s, coming under selling interest on PM Johnson’s decision to suspend Parliament.
US 30-year Treasury Yields Hit a New Record Low
The dollar kept drifting north against most of its G10 peers on Wednesday and during the Asian morning Thursday. It lost ground only against CHF, while it traded virtually unchanged versus EUR. The currencies that lost the most were GBP, NZD and SEK in that order, while the ones that underperformed the least against their US counterpart were JPY and CAD.
The strengthening of the franc and the relative resistance of the yen suggest that market participants continued to be cautious. That said, that was not the case throughout the...
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