The dollar is keeping steadier so far this week, even with falling Treasury yields at play. 10-year yields are now down to 4.015%, looking set for a third straight daily decline. It has even fallen back below the 200-day moving average of 4.089%, yet the dollar remains unfazed. It seems like traders are more inclined to wait for the Fed before really committing to any moves.
In the equities space, we are observing more sluggish sentiment as tech stocks struggle. Microsoft and Alphabet reported better earnings estimates overnight but both stocks are sold in after-hours trading. Nasdaq futures are down 0.8% and that is weighing on S&P 500 futures as well, down 0.4%.
European stocks remain a bright spot though, with the CAC 40 hitting record highs and the DAX also aiming for that later today. The inflation data in the session ahead could play a role in influencing that.
The French and German inflation numbers are up today, making them the highlights of the agenda in Europe. Both are estimated to show a drop in price pressures, helping to give the ECB added flexibility on rate cuts timing if need be.
0700 GMT – Germany December retail sales
0700 GMT – Germany December import price index
0700 GMT – UK January Nationwide house prices
0745 GMT – France January preliminary CPI figures
0855 GMT – Germany January unemployment change, rate
0900 GMT – Switzerland January Credit Suisse investor sentiment
1200 GMT – US MBA mortgage applications w.e. 26 January
1300 GMT – Germany January 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.