The dollar is down slightly on the day but it owes more to a drop in USD/JPY, following BOJ Takata’s remarks earlier here. Besides that, other dollar pairs are seeing lighter changes as broader market sentiment remains rather muted. US futures are flat while Treasury yields are not really hinting at much still so far this week.
Looking to European trading, inflation data will come into focus and that will put the euro under the spotlight. We’ll be getting February data for Germany, France, and Spain. And that has the potential to influence the ECB outlook, depending on what we get.
As things stand, traders are are seeing ~35% odds of an April rate cut with 90 bps worth of rate cuts priced in for the year.
Besides that, just be wary of month-end flows that could hit at the London fix later in the day.
0700 GMT – Germany January retail sales
0745 GMT – France Q4 final GDP figures
0745 GMT – France February preliminary CPI figures
0800 GMT – Spain February preliminary CPI figures
0800 GMT – Switzerland Q4 GDP figures
0800 GMT – Switzerland February KOF leading indicator index
0855 GMT – Germany February unemployment change, rate
0930 GMT – UK January mortgage approvals, credit data
1300 GMT – Germany February preliminary CPI figures
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.