Key Points:

European bourses & US futures are softer as the region struggles for a foothold after mixed APAC trade and ahead of Fed/debt ceiling events

USD picks up against peers ex-JPY as yields ease from best while AUD retreats after Chinese imports declined unexpectedly

Yellen reiterates the Treasury could run out of cash as soon as June 1st, with the Bipartisan centre expecting the x-date between early-June to August

Fixed benchmarks have been choppy but are firmer overall with Bunds bolstered on strong supply and USTs near highs

Commodities are, broadly speaking, pressured as the USD picks up and after Chinese trade data

Looking ahead, highlights include ECB’s Lane & Schnabel, Fed’s Williams & Jefferson, Biden meeting Congressional Leaders. Supply from the US, Earnings from Airbnb & Occidental Petroleum.

This article was written by Ryan Paisey at www.forexlive.com.