From Marc to Market:
Overview: The dollar is bid. Only the Japanese yen is holding its own against the greenback but only after it fell to new lows for the year. The Scandis and Antipodeans are the heaviest among the G10 currencies, while sterling has fallen to a new low for the month. The prospect of a rate hike tomorrow has not protected the New Zealand dollar much and it is off nearly 0.5%. Emerging market currencies are more mixed. Outside of the Russian rouble, the South Korean won, Philippine peso, and Mexican peso lead the advancers. The Hungarian forint, the strongest currency this year is off 1% amid expectations that the central bank will cut its overnight rate by as much as 100 bp to 17% (base rate is at 13%).
Most of the large Asia Pacific equity markets fell. Taiwan, South Korea, and India were exceptions. Europe's Stoxx 600 is snapping a three-day advance and is off about 0.3% in late morning turnover. US equity futures are a little softer. European 10-year yields are mostly 2-3 bp higher, but the sell-off in Gilts is stronger and the 10-year yield is up seven basis points to 4.13%, a new three-month high. The 10-year Treasury yield is up a little more than a basis point to 3.73%. Gold is on the defensive and is retesting last week's lows near $1950. July WTI is trading quietly around $72....
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