Post-Fed sell-off accelerates in European.....>

FOREX: Post-Fed sell-off accelerates in European hours

- Equity markets nurse decent losses after the first few hours of European

trade, with continental markets off 2-3% and peripheral markets slightly

underperforming. Mirroring the risk-off sentiment bond yields globally have

taken a leg lower, with the US 10y yield off around 4bps and below 0.7%.

- This has fed a solid bid in haven currencies ahead of the NY crossover,

keeping CHF and JPY at the top of the pile. USD/JPY now sits solidly below Y107

and USD/CHF hitting new three-month lows just above 0.94.

- Antipodean currencies are at the other end of the table, with AUD/USD back

below $0.70 (although still above the Tuesday lows) and NZD/USD following suit.

Softer commodity markets this morning are also weighing. WTI and Brent crude

futures are down just shy of 4% apiece, leading CAD and NOK lower also.

- US weekly jobless claims data may take some extra focus this week given the

blowout NFP reading we saw last week and the disconnect between these numbers

and the monthly BLS data. PPI data for May is also on the docket Thursday.