Dollar higher as US rate expectations, US bond yields rise

•     Dollar higher as US rate expectations, US bond yields rise

–    St. Louis Fed President Bullard sees “better than 50-50” chance of a hike in Sept

–    Market prices in a bit more risk for next week’s FOMC meeting

–    Heavy US corporate bond issuance also pushes up US bond yields

–    BUT continued rally in European bonds sends Bund yields lower

–    US-Germany spread moves in favor of US, USD strengthens

•     Oil, other commodities continue to fall

•     NZD rises as market feels decline has gone too far

–    Market discounting possibility of more than 25 bps cut at Thursday’s RBNZ meeting

–    Likelihood is that expectations are disappointing, NZD to recover

•     AUD slipping after RBA minutes show weak economy in Q2, RBA hopes for further decline in AUD (as usual)

•     JPY weak after minutes show some Policy Board members expect recovery to slow in Q2

•     TRY plunges on bombing; USD/MXN hits record high as oil falls

Today: no major indicators out