The dollar is on edge once again, after falling following yesterday’s US CPI data. While the bond market isn’t really pointing to much change yet, dollar techs are being questioned as seen here.
The front end of the Treasury yield curve has softened, with the 2-year yield now back below 4% to 3.98% currently while the 10-year yield has been relatively flat, currently at 3.41% – still above the key limit 3.30%. A 25 basis point rate hike remains the most likely option for May, but market prices are showing that should be the peak for the year.
Wall Street was bullish early but has seen a late tumble and that keeps stocks more cautious today. S&P 500 futures are up 4 points, or 0.1% at the moment, but it’s still just getting started. In the meantime, European indices will be looking to build on the slight gains yesterday with both the DAX and CAC 40 hanging at highs for the year.
Looking ahead, there will be some data releases to get things moving in Europe with UK monthly GDP one to watch for the pound. If nothing else, keep an eye on the risk sentiment and dollar sentiment as there is still US PPI (today) and retail sales (tomorrow) data to work from.
0600 GMT – Final figures for Germany’s CPI for March
0600 GMT – UK monthly GDP data for February
0900 GMT – Eurozone Industrial Production for February
That’s it for the next session. I wish you all the best in the coming days and good luck with your trading! Stay safe out there.
Comments are closed.