Hawkish comments from Fed Vice-Chair Stanley Fischer
The US dollar is catching a bid and stocks are coming under mild pressure after Stanley Fischer appeared on CNBC and delivered a few hawkish comments.
The implied probability in markets of a Sept hike is around 20% but Fischer sounded like it was significantly higher for him.
He said that before the round of volatility, the case for a rate hike was "pretty strong" but not conclusive. He touched on the importance of how markets react over the next two weeks.
"I think [markets] could settle fairly quickly," he said.
Overall, he sounded upbeat and undeterred by markets and worries about China.
I think that as these comments resonate they could extend the knee-jerk moves of weaker stocks (especially) and a stronger dollar (unless stocks really begin to fall).
As Ryan notes, it's a dangerous day and time to trade with fixings and flows hitting ahead of a long weekend in the UK and month end.