Markets remain under pressure overnight, with bond yields screaming alarm bells, especially in Japan and Europe. Japanese bond yields are trading at levels not seen in thirty years, while European yields are trading around GFC levels. This is a major warning sign for markets, under threat from resurgent inflation and a looming energy crisis. The US Dollar was soft, with the EUR trading 1.1570, while the GBP consolidated above 1.3500.
Commodity currencies drifted off highs, with the NZD retreating from 0.5900, while the AUD surrendered 0.7100. These commodity currencies remain extremely vulnerable to interruptions to trade, especially oil and gas, and a potential revisit of the energy crises.
