US dollar was sent south and stocks pressured, but why? - ANZ

Analysts at Westpac offered a break down of events over night that sent markets into risk-off mode and the dollar south.

Key Quotes:

"A confluence of events, from weak Chinese export data and more Fed speak of higher rates following the publication of the September Minutes saw equities under pressure overnight. European equities were down sharply with the DAX falling 1% and Euro Stoxx 50 down 1.1%, while US equities opened sharply lower but grinded higher through the session to finish down just 0.2%. Fixed income markets benefited from the slightly more cautious approach to risk. The 10-year bund yield finished 3bps lower, while the US 10-year yield was flat. Sterling’s nosedive has shown some tentative signs of moderating, but rallies are negligible at this stage. News that the Scottish First Minister has pledged a new Independence Bill within the next week resurrects the Scottish issue to add to the deep uncertainty facing the UK. Oil remained firm (WTI +1.4% at USD50.5/bbl) and gold was a touch firmer."