Major currencies are not showing much appetite so far today but the dollar was somewhat softer in trading yesterday. That comes against the backdrop of softer equities once again with bond yields retreating in the US session as well.
There is a consistent theme throughout the week so far and it is one that suggests a risk rotation play. The flows could possibly be month-end and quarter-end driven, as money moves from stocks to bonds. The S&P 500 is down 1% on the week now, with a three-day losing streak stretching back to Friday last week.
For now, equities are in a pensive mood again as caution continues to be heeded. A surprise 50 bps rate hike by the BOE will likely spook markets further, and if not surely the UK FTSE at least. That will be the main focus on the agenda in the session ahead, alongside the SNB which is expected to raise interest rates by 25 bps.
0645 GMT – France June business confidence
0730 GMT – SNB announces June monetary policy decision
1100 GMT – BOE announces June 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.