There's no stopping the dollar so far today and if USD/JPY can hold a break above 130.00 with little indication of a pushback by Chinese authorities o
There’s no stopping the dollar so far today and if USD/JPY can hold a break above 130.00 with little indication of a pushback by Chinese authorities on the yuan plunge, then the greenback looks primed to hold on to the gains at the moment.
The bond market is keeping rather quiet as yields are little changed but staying elevated after the surge earlier in the month. Equities are seeing a better mood with US futures pointing to a solid bounce after some push and pull in trading yesterday. S&P 500 futures are up 0.8% currently but that isn’t quite helping sentiment in FX.
It’s all about the dollar at the moment and it’s tough to fight the recent momentum. Month-end flows might offer something different in the sessions ahead but the key focus remains on the FOMC meeting next week on 4 May. In that respect, it is tough to imagine the dollar momentum faltering too much before we get to that.
Spanish and German inflation will be in focus today and while there might be signs of cooling in the year-on-year numbers, they will still be elevated with a rise in the month-on-month readings not really providing too much comfort for the ECB.
0700 GMT – Spain April preliminary CPI figures
0900 GMT – Eurozone April final consumer confidence
0900 GMT – Eurozone April economic, industrial, services confidence
1200 GMT – Germany April 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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