The dollar is keeping in a decent spot to start the day, with risk sentiment a little more sluggish to start the month. S&P 500 futures are down 0.2% and Nasdaq futures down 0.4% currently. But it’s stilly early in the week, with plenty of US data to work through.
USD/JPY continues to bask in the more volatile environment, with the pair moving up to 147.20 earlier before slipping back to 146.50 now. Besides that, the dollar is holding a marginal advance across the board with gains more evident against the antipodean currencies. In other words, it is suggestive of a slight defensive risk posture going into European trading.
Looking to the session ahead, Swiss data will come into focus with August CPI and Q2 GDP. The SNB is keeping a watchful eye on the franc, with chairman Jordan recently saying that “the exchange rate does not make the (industry) situation easier”.
Traders are expecting a 25 bps rate cut later this month but will the central bank push for a 50 bps move instead? Well, the inflation data today will be one to test that appetite at the very least.
Besides that, there is the German retail sales data for May which is odd given that it is already September. There doesn’t seem to be an official statement by Destatis on the delay but it is what it is. And perhaps it’s also a good thing as typically the data does disappoint. That especially as inflation has been gripping consumption activity in the German economy.
In the bigger picture this week, the focus is on US data as we count down to the jobs report on Friday. For today, there is the ISM manufacturing PMI coming up later in the day.
0600 GMT – Germany May retail sales
0630 GMT – Switzerland August CPI figures
0700 GMT – Switzerland Q2 GDP 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.