The fallout of the dollar is the big story yesterday as markets were caught in a whipsaw initially after the US CPI data came out within estimates. The yen was the prominent mover, backed by intensifying speculation that the BOJ may look for a policy tweak or signal further intentions of one at next week’s meeting.
Equities ended the day higher as well but US futures are tilting slightly lower today with bond yields also marginally higher. The market mood is settling down with the dollar also retracing losses slightly against the likes of the franc, aussie and kiwi. Other major currencies remain mostly little changed.
Looking ahead, trading sentiment will continue to revolve around the risk mood but just be mindful that the dollar is in a rough spot, particularly against the euro and yen. UK monthly GDP will be on the agenda in Europe, set to reflect a 0.2% decline in activity. The data is not likely to offer much for the pound though.
0700 GMT – UK November monthly GDP0745 GMT – France December final CPI figures0800 GMT – Spain December final CPI figures1000 GMT – Eurozone November trade balance data1000 GMT – Eurozone November industrial production
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.
This article was written by Justin Low at www.forexlive.com.