NZD

• Risk off. Weaker US data dampened sentiment. Equities & bond yields declined. USD ticked up, with cyclical assets like the AUD under pressure.• BoE cut. BoE delivered its first cut of the cycle. Further easing likely. US rate cut expectations have ramped up. More than 4 moves priced in by January.• US jobs. US jobs report released tonight. A softer print could drag US yields even lower. But would this generate a negative or positive market spillover? The positive tone in markets reversed overnight with concerns about the economic environment in the US dampening sentiment. US and European equities...

• Positive tone. Improved risk sentiment. Equities rebound. Bond yields lower. Backdrop helps the AUD claw back a little lost ground.• Volatility bursts. It is a jam-packed week of events. We think more market volatility is likely as the macro cross-currents wash through.• Event radar. Q2 AU CPI due (Weds). BoJ (Weds), BoE & US Fed (both Thurs) meet. US payrolls are released (Fri), as is the China PMI & EZ CPI (Weds). After a challenging spell risk sentiment improved a bit at the end of last week. European and US equities rose on Friday with the S&P500 up over...