Sentiment remains cautious as we get the session going

Market sentiment remains cautious following yesterday’s price action.

– Marginal downside in equities with most major benchmarks still trading close to their lows from yesterday.

– All eyes today will once again be on yields where the break of 4.36% on US 10-year yields triggered the move lower in equities.

– More mixed today across the board, but worth noting that major benchmark yields are still close to their highs from yesterday.

– A lot of focus will be on today’s incoming ISM services PMI to see whether we see the same upside surprise like we did with the Mfg numbers.

– Mostly higher with precious metals up, oil trading higher, but base metals are more mixed with copper up on the session but downside seen for Iron Ore (something to watch for the AUD).

The CHF is leading the pack to the downside (much like it did for the majority of yesterday’s session), while the USD is currently at the top of the leaderboard. However, it’s worth noting that we are seeing some very tight ranges across major pairs so take the initial strength and weakness with a pinch of salt.