Yield on the US 10-year treasuries broke above 3.2%, a 7-year high. Yields and treasury prices move in opposite directions so a fall in prices raises yields higher. The major equity market indices in the US were hit negatively as well as investor sentiment dwindled.

On Thursday data for initial jobless claims came in better than expected, and later today we have US Nonfarm payrolls for the month of September and it seems that expectations are aiming for a stronger than expected figure.

Comments from Federal Reserve Chairman Jerome Powell last Wednesday also seemed to suggest that more rate hikes could be forthcoming. Finally optimism on Jobs data and Powell’s comments helped propell the USD higher this week and despite the slight correction seen throughout Thursday the Dollar index is in positive this morning.

Stronger US data points towards more tightening as the Fed harnesses the US economy’s pace of growth. Tightening brings about higher yields, that in turn lend support to the USD but has also dampened apetite for equities at least in the near term.