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Early action is in Govies

CROSS ASSET
  • Broader base USD buying going through, but very limited range in early trade, with most of the early action happening in Govies.
  • Early price action, was led by yesterday's ECB Schnabel hawkish comment, with Europe catching up on the open.
  • Yields are so far being defended, 1% for Germany, 3% US, 3% Italy and 2% UK, not too surprising, with all the attention on the US FOMC later.
  • USD is now mostly up against G10, with Risk tilted to the downside.
  • AUD was the early best performer, but is now just 0.10% up versus the Greenback

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