ForexLive European FX news wrap: Dollar surges as markets sell everything else

<p>Headlines:</p><ul><li><a target=“_blank“ href=““>Dollar continues to run hot amid sell everything mood</a></li><li><a target=“_blank“ href=““>Markets go back to the regular scheduled programming</a></li><li><a target=“_blank“ href=““>UK budget anything but „mini“</a></li><li><a target=“_blank“ href=““>UK finance minister says will scrap planned increase on corporation tax</a></li><li><a target=“_blank“ href=““>UK September flash services PMI 49.2 vs 50.0 expected</a></li><li><a target=“_blank“ href=““>Eurozone September flash services PMI 48.9 vs 49.0 expected</a></li><li><a target=“_blank“ href=““>USD/CNY pushes past 7.10 as yuan decline extends further</a></li></ul><p>Markets:</p><ul><li>USD leads, GBP lags on the day</li><li>European equities lower; S&P 500 futures lower by 1.2%</li><li>US 10-year yields down 5.5 bps to 3.765%</li><li>Gold down 1.4% to $1,647.13</li><li>WTI crude down 3.5% to $80.61</li><li>Bitcoin down 1.8% to $18,893</li></ul><p style=““ class=“text-align-justify“>After a frantic but historic day in markets yesterday, we are back to the regular scheduled programming today. It was pretty much a case of buy the dollar, sell everything else in European trading as markets settle down and stick to digesting the post-Fed narrative.</p><p style=““ class=“text-align-justify“>The pound was a notable mover as it tumbles by 2% at the lows against the dollar, with GBP/USD sliding below 1.1200 to 1.1020 on the day. That came despite the UK announcing its largest amount of tax cuts since 1972, in an effort to bolster the economy. UK rates surged higher but the currency continues to be routed despite the surprise. Emerging market much?</p><p style=““ class=“text-align-justify“>Elsewhere, the dollar is running riot as EUR/USD fell to its lowest in 20 years – down 0.9% to 0.9750. USD/JPY was tentative early on but buyers are feeling a little more confident now, pushing the pair up from 142.20 to near 143.00 on the session.</p><p style=““ class=“text-align-justify“>Meanwhile, USD/CAD is testing waters above 1.3500 while AUD/USD is down 1% on the day to 0.6575 currently with NZD/USD also dropping by 1% to 0.5790 as the rout continues. There’s just no better place than the dollar right now.</p><p style=““ class=“text-align-justify“>In other markets, bond yields shot higher after the UK budget announcement with Treasury yields also pulling higher across the curve. As for equities, the pressure continues with European indices selling off heavily and are down over 2% now while US futures are down over 1% ahead of the Wall Street open.</p><p style=““ class=“text-align-justify“>Commodities were not spared the drop with gold down over 1% to $1,647 while WTI crude is down over 3% and looking towards $80 next.</p>

This article was written by Justin Low at

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