The dollar is keeping slightly weaker across the board with the yen being the notable mover once again. Of note, USD/JPY is retreating further after h
The dollar is keeping slightly weaker across the board with the yen being the notable mover once again. Of note, USD/JPY is retreating further after having hit the 125.00 handle early on in the week with the drop at the moment hovering around 1% to 121.60. So far, the 200-hour moving average @ 121.27 is helping to hold the line for the pair.
Elsewhere, EUR/USD is seeing testing waters above 1.1100 as Russia-Ukraine peace hopes are helping with the mood somewhat. The dollar is marginally weaker elsewhere but not much changed overall against the pound and aussie as compared to trading levels yesterday.
The bond market rout is taking a breather today with yields marked lower all across the board. The BOJ is stepping in and that has helped to quell the advance of 10-year JGB yields from 0.25% to 0.22%. Looking at Treasuries, 2-year yields are down 4 bps to 2.308% and 10-year yields down 6 bps to 2.336%.
We’re just a little over 2 bps from an inversion in 2s10s. Adam shared some thoughts on that here.
Looking ahead, European data releases won’t do much to change the trading picture this week. Yes, the Spanish and German inflation may be cause for concern so that might warrant some consideration but otherwise, the focus will stay on the bond market and the yen in the FX space.
0700 GMT – Spain March preliminary CPI figures
0700 GMT – Switzerland March KOF leading indicator index
0800 GMT – Switzerland March Credit Suisse investor sentiment
0900 GMT – Eurozone March final consumer confidence
0900 GMT – Eurozone March economic, services, industrial confidence
1100 GMT – US MBA mortgage applications w.e. 25 March
1200 GMT – Germany March preliminary CPI figures
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.
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