Longer dated Treasury yields continue to fluctuate with the comments of Fed speakers and this is generating uncertainty across dollar moves. The dovish comments from the FOMC’s Lael Brainard (that the Fed needs to roll out more stimulus to overcome the COVID crisis) should not really come as too much of a surprise given her historic dovish leanings, but they have pulled yields lower. This has helped to restrict the dollar sell-off for the time being. We still see the dollar continuing to weaken in due course, but a near term rebound is developing today, helped by better than expected ISM Manufacturing and new orders. This is weighing across major pairs, with the Aussie dollar especially in the crosshairs as Australian Q2 GDP came in far worse than expected overnight. This is also weighing on gold, which is once more very much allied to moves on the dollar through negative correlation. All the while, these currency moves are having a key impact on equities too. The dollar weakness helps to drive Wall Street ever higher, whilst European markets are performing less well due to currency strength. Add in ongoing risk for the UK economy of Brexit trade negotiations and we see a mammoth underperformance on FTSE 100.