The dollar remains in retreat mode again today, continuing the downside momentum from last week. Equities managed to put on a good showing in US trading yesterday, keeping poised in aiming towards the highs of the year next as well. It’s all playing out as it should in what will be a holiday-shortened week for markets amid the Thanksgiving holiday on Thursday.
Bond yields are also continuing to ease lower, with 10-year Treasury yields now seen at 4.39% and closing in on the 100-day moving average near 4.35% currently. That will be a crucial crossroads for market players in deciding what the next trend will be heading into December trading.
For today, it’s the same as yesterday as traders will be left with only dollar sentiment, the risk mood, and bond market developments to work with. There isn’t any major data releases in Europe and later on, we’ll only have Canadian CPI to work with in North America trading. So, that will keep the prevailing theme in focus for the day ahead.
0700 GMT – Switzerland October trade balance data
At 1015 GMT, BOE policymakers will be testifying in parliament on monetary policy, inflation, and the UK economic outlook, so there’s that to watch out for. But there shouldn’t be any notable remarks that we don’t already know of in all likelihood.
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.