Markets are favouring risk aversion, but most activity has been relatively muted. Equities are soft, the U.S. 10year yield is at 2.51% and the USD is mixed; with SEK and NZD underperforming (down –0.2%) and JPY outperforming (+0.4%). Today, data flow is fairly limited and there are no Fed speakers—leaving no dovish pushback to the mostrecent hawkish comments from Bullard and Lacker. Next week is a holiday shortened week in the U.S. and Canada but a slew of data, including nonfarm payrolls, Eurozone flash CPI and the RBA and ECB meeting should still keep markets interested.
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