Aggressive bets on U.S. 10-year yields and Federal Reserve's repricing of dovish bets have impacted global equities and the dollar, leading to a slide in global equities and a bounce in the dollar. The upcoming U.S. payrolls report is significant, with traders expecting a little better than 2-in-3 odds that the Fed cuts rates by March. The article also mentions the impact of a deadly New Year's Day quake on the yen and the potential implications of the Bank of Japan policy shift, as well as Britain's house price data and consumer lending figures bolstering bets the economy can skirt a recession, lifting sterling.

Fed's Actions Spark Market Volatility