Both the dollar and Treasury sellers look like they’re in to be squeezed right now, after a turn in the bond market yesterday. 10-year yields tumbled by nearly 20 bps after Yellen’s hub announced a wave of supply that is less fearful for traders. The greenback dropped as a result and this is keeping things rather interesting ahead of the US jobs report tomorrow. I shared some thoughts here.
In other markets, equities look to benefit as the Nasdaq secures a recovery back above its 200-day moving average while the S&P 500 is nearing a test of that same level now.
As for the dollar, it is in a bit of a bind as USD/JPY drops back to 150.40 after a breakout above the figure level yesterday. EUR/USD continues to chop but is sitting near 1.0600 for now while AUD/USD is looking to come up for air as it trades to its highest in three weeks at 0.6424 currently.
It’s all about the bond market again and that will put a lot of emphasis on the non-farm payrolls data tomorrow. For today, the BOE is in focus but it should be a dull one as Bailey & co. are likely to reinforce their hold position as inflation has been trending a little softer in the UK as of late.
0730 GMT – Switzerland October CPI figures
0815 GMT – Spain October manufacturing PMI
0845 GMT – Italy October manufacturing PMI
0850 GMT – France October final manufacturing PMI
0855 GMT – Germany October final manufacturing PMI
0855 GMT – Germany October unemployment change, rate
0900 GMT – Eurozone October final manufacturing PMI
1130 GMT – US October Challenger layoffs, job cuts
1200 GMT – BOE announces its November monetary policy decision
That’s all for the session ahead. I wish you all the best of days to come and good luck with your trading! Stay safe out there.