A couple of light releases on the agenda in Europe today | Forexlive
Wall Street was sent for a bit of a spin yesterday, as ratings agencies were slow to the game again and incited a bit of fear mid-way through. A late round of bids made the equities close look better than it did but perhaps it did justice to overall market sentiment as Treasury yields also recovered strongly.
The fact that 2-year yields are seeing a smaller range today and acting much calmer is a welcome development, while also maintaining a further bounce. It is seen up over 9 bps to 4.32% currently.
In FX, things have been progressing rather sideways for the most part. If anything, the dollar is the one who looks to be weakening on the balance this week. That comes as traders are cornered into a guessing game on what the Fed will do next week. When the list of outcomes range from a 50 bps rate hike to a 25 bps rate *cut*, it makes this one of the most difficult policy decisions to anticipate in recent memory.
For now, the market recovery and calmer mood i.e. sentiment will still act as the key driver in the session ahead. That comes with little in terms of economic data in Europe to really move the needle.
0700 GMT – Germany February wholesale price index
0745 GMT – France February final CPI figures
1000 GMT – Eurozone January industrial production
1100 GMT – US MBA mortgage applications w.e. 10 March
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.