No major releases on the agenda in Europe today | Forexlive
There’s pretty much a push and pull all across markets at the moment as traders continue to weigh the Fed outlook for the May policy decision. As things stand, Fed fund futures are seeing roughly 70% odds of a 25 bps rate hike with the remaining 30% reflecting no change.
That being said, the pricing can easily swing around especially as we have some key US data in the pipeline over the next few days. And they don’t come any bigger than the consumer price inflation report later today.
The dollar gained after the US jobs report on Friday but is struggling somewhat upon the end of the Easter break yesterday. Meanwhile, gold dipped back below the $2,000 mark before rising back up to $2,020 now. Equities are also somewhat sanguine (at least it is in Europe) but the DAX and CAC 40 are still sticking around the highs for the year for now.
Looking over to the bond market, 2-year Treasury yields are still treading water near the 4% level while 10-year yields in the US remain a key focal point for broader markets in general as outlined here. The latter is sitting at around 3.43% at the moment, still holding just above the key threshold around 3.30%.
Then, we also have Bitcoin knocking on the door of $30,000 and WTI crude still poking and prodding above the $80 mark with key resistance still lying around $82.35-60 for now.
To cut things short, a lot of things are hanging in the balance and if we do start to see a major run, especially in the bond market, expect that to send broader markets into a frenzy whichever way as well. And all of this could very well be triggered by the major economic releases slated in US trading this week.
1100 GMT – US MBA mortgage applications w.e. 7 April
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.