The dollar shot up, The Canadian dollar extended its losses

The euro EUR= hit a six-week low of $1.1717 on Wednesday as the dollar broadly gained, and last traded at $1.1722, having shed 1.9 percent so far this week.

The dollar shot up to a 2-1/2-month high of 113.26 yen JPY= the previous day before stepping back to 113.08 yen Thursday. 

The Canadian dollar CAD=D4 extended its losses, suffering its biggest drop in eight months on Wednesday, after Bank of Canada Governor Stephen Poloz dampened expectations for further interest rate hikes this year.

The dollar strengthened against many emerging market currencies while gold XAU= hit a one-month low of $1,281.5 per ounce.

U.S. bond yields jumped with the yield on two-year notes US2YT=RR rising to a nine-year high of 1.49 percent in anticipation of a rate rise in December.

The 10-year yield rose to 2.357 percent US10YT=RR, its highest in more than two months, compared to this week’s low of 2.214 percent while the 30-year bond yield US30YT=RR climbed to 2.901 percent after having risen 9 basis points on Wednesday - the biggest one-day rise in almost seven months. 

Japanese yields rose in tandem with benchmark 10-year futures 2JGBv1 set for their biggest fall in three months, partly driven by expectation of fiscal easing after Prime Minister Shinzo Abe called a snap election expected on Oct.22. 

Oil prices hovered a tad below the peaks hit earlier this week as the market consolidated after a strong rally this month. 

Brent LCOc1 futures traded at $57.78 a barrel, down from Tuesday’s 26-month peak of $59.49.

U.S. West Texas Intermediate crude (WTI) CLc1 fetched $52.05 per barrel, below Tuesday’s five-month high of $52.43 after oil stockpiles in the world’s top consumer unexpectedly drew down, with refiners coming back online following Hurricane Harvey last month.