Societe Generale in its early Friday economic news summary pointed out:
Risk off as United States Treasury yields accelerate, OIS pricing 80% chance of Federal Reserve rate hike by December. Two-year UST up to 4.06%, 10-year to 4.53% (+18bps this week). US dollar (USD) set for best week in two months, high beta retraces with stocks including Scandinavian, Australian dollar (AUD), Hungary's forint (HUF), South Africa's rand (ZAR), Mexico's peso (MXN). EUR/USD tumbles below 50/200dma. Brent +6.1% this week, natural gas +8.6%.
Federal Reserve's Williams: no need to raise or cut rates now, policy in a good place. Barr: lowering liquidity rules to shrink balance sheet would have perverse effects/threaten financial stability, inflation is an overwhelming risk, economy booming.
Day ahead: U.S. industrial production. European Central Bank's Vujcic and Dolenc. ECB economic bulletin. Romania's central bank to stay on hold at 6.50%.
Nikkei -2.3%, EUR 10-year IRS +5bps at 3.12%, Brent crude +1.6% US$107.5/barrel, Gold -2.3% at US$4,570/oz.