Group 1 - The US dollar index experienced a slight decline, reported at 98.10, down 0.18%, after a previous increase that saw it close at 98.27, up 0.13% [1] - Initial jobless claims rose to 237,000, exceeding expectations by 8,000, indicating a slowdown in the hiring environment [1] - The ADP national employment report showed only a 54,000 increase in private sector jobs for August, significantly below the expected 75,000 and down from 106,000 in July, reinforcing dovish sentiment in the bond and forex markets [1] Group 2 - US Treasury yields fell across all maturities due to weak labor data, with the 10-year yield down 2.1 basis points to 4.19% and the 2-year yield dropping to 3.60% [1] - The 30-year Treasury yield remained below 4.90%, reflecting persistent fiscal concerns globally [1] - Market expectations for a Federal Reserve rate cut on September 17 have surged to nearly 100%, up from 89% a week prior, according to CME Fed Watch data [1]

Core Viewpoint - Morgan Stanley anticipates that the Bank of England will lower interest rates by 25 basis points in its upcoming meeting, indicating a shift towards a more dovish stance within the committee [1] Group 1 - At least two members of the Bank of England's committee are expected to support a 50 basis point rate cut, reflecting an increase in dovish sentiment [1] - The policy guidance language is expected to change, with the term "gradual" likely to be removed, paving the way for consecutive rate cuts [1] - Morgan Stanley projects that the Bank of England's interest rate will decrease from the current 4.50% to 3.25% by the end of 2025 [1]