GBP volatility continues to be the main driver of sentiment in the G10 FX space. We have dipped underneath 1.1080, which is more than 1% off earlier highs just above 1.1200. We have now stabilised somewhat, but there has still been spill over to the rest of the complex. EUR/USD is back to 0.9800, while AUD and NZD are both down around 0.20% to 0.30% versus NY closing levels. AUD/USD was last just under 0.6490, NZD at 0.5710/15. USD/JPY holds close to 144.75.
- Weaker China PMIs, in aggregate, hasn't helped the risk mood, with US equity futures dipping back into negative territory. UST yields are drifting higher, more so in the front end: 2yr to 4.215% (+2bps for the session).