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The dollar is not really building on its post-CPI gains so far today, as it is keeping just a touch lower as we look towards European trading. While things are still looking up for the dollar, the next leg higher might not come by so easily. Broader markets are also keeping more tentative so far, adding to the tricky situation on the day.

US futures are little changed and Treasury yields are a little lower with 10-year yields seen at 4.306%. The latter is still keeping a breakout from the previous 3.80% to 4.20% range, so there’s that.

Amid the lack of follow through, the question now turns to whether or not dollar bulls have more appetite to solidify their conviction this week. And we might have to wait until the US retail sales and PPI data in the coming days.

As for today, UK inflation will be a highlight on the economic calendar. Core annual inflation is expected to hold above 5% and that should reaffirm the BOE’s current policy stance. Barring any major surprise on estimates, the pound should be relatively muted with odds of a June rate cut already marked down to ~40% currently.

0700 GMT – UK January CPI figures
1000 GMT – Eurozone Q4 GDP second estimate
1000 GMT – Eurozone December industrial production
1200 GMT – US MBA mortgage applications w.e. 9 February

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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