The U.S. dollar was weaker across the board vs. the majors despite the return of risk aversion. Some see weak U.S. data as putting a drag on dollar demand. While we still think the U.S. outshines the euro zone from a fundamental standpoint, the break of 1.25 points to further losses ahead for the dollar.Yen was mixed while the Swiss franc was largely firmer, but dollar-yen fell to 87 before bouncing slightly. EM FX was mostly firmer despite lower equity and commodity markets. Biggest gainers on the day vs. USD were RON, EUR, CZK, HUF, and PLN, while biggest losers vs. USD were ZAR, KRW, MXN, TWD, and PHP. Sweden hiked 25 bp, as expected. U.S. vehicle sales came in weaker than expected, and so markets will likely remain nervous about Friday's jobs report, as US data has come in on the weak side in recent weeks. Australia mining tax deal was announced as Antipodean markets opened, so AUD was building on Thursday gains. US equity markets were lower but ended off the intraday lows, as DJIA, S&P and Nasdaq ended down 0.4%, 0.3% and 0.4%, respectively. European markets were lower, too, with Euro Stoxx 50 down 2.1%. Asian equities are likely to open down today as Asian ADRs were lower during N. American trading Thursday. Nikkei futures point to a flat open for Japan. U.S. bond market was lower, as 2- and 10-year yields were up 2 bp and 2 bp, respectively. European bond markets were mostly higher, as 10-year yields in U.K., France, and Germany were down 4 bp, 5 bp, and 1 bp, respectively. Greek 10-year yields fell 13 bp, Portugal fell 12 bp, Ireland fell 2 bp, Italy fell 2 bp, and Spain rose 1 bp. French bond auction went well; Spain's went OK.