​USD Gains Continue ​​

The USD has seen broad based gains in the first part of trading today. The DXY is up around 0.40% from NY closing levels to +109.20. We are within striking distance of previous cyclical highs just shy of 109.30.

• In many respects, moves are a continuation of what we saw through the tail end of the Friday night session, with cross asset signals favouring the USD.
• US yields have spiked, with the 2yr up close to 5bps, and just shy of 3.45%. The 10yr up by a similar amount to 3.09%. US equity futures are down sharply, the S&P500 off 1.1%, the Nasdaq -1.60%. Regional equity markets are also in the red.
• The market has had further time to digest the weekend events around Jackson Hole, which it sees as hawkish (higher for longer US rates).
• USD gains are broad based. Both JPY and GBP are 0.5% weaker against the USD. USD/JPY is back to 138.35/40, while GBP/USD is under 1.1680, likely not helped by Goldman's UK recession call (for Q4 this year).
• EUR/USD is around 0.9930, not too far from last week's lows close to 0.9900.
• AUD/USD is at 0.6860, also tracking close to last week's lows. NZD/USD is at 0.6110.
• Coming up is the AU retail sales print, +0.30% expected, versus +0.2% in June.