Market wrap: Sterling stole the show again - Westpac

Analysts at Westpac offered a market wrap.

Key Quotes:

"Global market sentiment: The EUR and GBP were quite volatile overnight, partly related to BoE Carney’s speech. AUD and NZD are higher as a result, commodities also helping.

Interest rates: US 10yr treasury yields are little changed, after fluctuating between 1.74% and 1.79%. The 2yr yield rose from 0.84% to 0.86%. Lockhart spoke but avoided monetary policy.

Currencies:  The US dollar index is little changed but did make a fresh nine-month high early in the NY session. EUR initially fell from 1.0894 to 1.0851 but reversed sharply to 1.0905 after BoE Carney’s speech which noted the limitations of monetary policy. Underperformer GBP initially fell from 1.2240 to 1.2084 pre-Carney and then rebounded to 1.2206 afterwards. USD/JPY fell from 104.87 to 104.12. Outperformer AUD extended the day’s rise from 0.7620 to 0.7655. Rising coal and iron ore prices have been supportive, iron ore yesterday rising 4.5% to August levels. NZD also gained overall, to 0.7173. AUD/NZD rose from 1.0670 to 1.0703."