Risk sentiment broadly positive.
After Powell's speech U.S. longer term yields have continued to rise.
US10Y now yields 0.77%
US30Y now yields 1.55%
USD has lost some of yesterday's momentum.
Coming into the end of August, Citi said there would be USD selling.
Traders have today and Monday to rebalance their portfolios before the EOM fix.
EURUSD back above 1.1850.
Gold back above $1940
Looking like a positive start for Europe;
The end of Abenomics?
Earlier reports of Japanese PM Abe resigning due to health reasons look to be correct, (although still pending official confirmation).
Bloomberg report that Abe will explain reasons for resignation at a news conference scheduled for 9AM BST.
Ransquawk adding some colour;
USDJPY has strengthened and stock markets were pressured as the resignation of PM Abe could represent the end of an era of his reflationist and three arrows Abenomics policies which have been in place since late 2012.
Quick note on the U.S stimulus bill.
No progress between Pelosi & Meadows.
At this stage, end of September looks most likely as Dems will have leverage.
“I think the speaker is going to hold out until the end of September and try to get what she wants in the funding for the government in the CR or whatever funding mechanism happens to come up at the end of September,” Meadows said.
A much fuller calendar ahead today, but nothing that really jumps out as significantly market-moving.
BOE governor Bailey speaks at Jackson Hole at 16:05BST, worth watching for any clues on future UK monetary policy.
Any mention of warming to negative rates would likely send GBP lower.
Seems unlikely, but you never know...
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