Themes

· General mood is “risk off”

· Dollar follows the fortunes of U.S. yields on New York trade

· Canadian Employment slightly weaker than expected at 72.5k

What’s Moving

New York trade opened to a decent Dollar bid as traders again took notice of higher U.S. yields. This saw broad based Dollar gains across most of the majors. A small swoon on yields then saw profit taking emerge on the Dollar gains at that pretty much sorted out the U.S. session.

Sterling was the worst hit on the day, with stops triggered at 1.3000 seeing further weakness after that level has held well recently.

Little major data was released over the overnight session, although Canadian Employment was slightly weaker than expected (72.5k).

Thoughts

After a ranging overnight session and factoring in the Monday effect in Asia, we are expecting a fairly quiet local session today. The data calendar is also light today and includes:

· Chinese CPI (E: 1.3%)

· Chinese PPI (E: 8.1%)