US stocks were dealt a bit of a setback yesterday and that is setting up for a bit more of a pensive mood ahead of European trading later. That comes despite a fall in Treasury yields, which are bouncing a little today with 10-year yields up 5.5 bps to 4.176% currently.
In FX, the dollar seems to have shrugged off its attachment to yields, as it is keeping more resilient. The fact that markets are seeing quicker rate cuts elsewhere while having arguably priced in a ceiling on rate cuts for the Fed next year is a key consideration right now. The euro is little changed at 1.0760 but has fallen in each of the last six days against the dollar.
Looking to the session ahead, markets are likely to consolidate the action so far this week as all eyes are turning towards the US jobs report tomorrow. With a lack of major economic releases in Europe today, that won’t help traders get off their seats in the session ahead. As such, we’re likely in for more of a tentative and slow one this morning.
0645 GMT – Switzerland November unemployment rate
0700 GMT – Germany October industrial production
0700 GMT – UK November Halifax house prices
0745 GMT – France October trade balance data
1000 GMT – Eurozone Q3 final GDP figures
1230 GMT – US November Challenger layoffs, job cuts
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.