Are we due a turnaround Thursday? The dollar is keeping a little firmer now as we look towards European trading, after the sort of poker game from the events yesterday. It was a case of CPI giveth, Powell taketh away as markets had to adjust their convictions back and forth in reaction.
It’s now time to digest things further before we get to another round of US data later in the day. And that will feature the weekly jobless claims as well as the PPI report for May.
In the equities space, US futures are holding higher after the gains yesterday. However, the latter was trimmed as the Fed failed to convince of an earlier timeframe to cut rates. Still, the S&P 500 and Nasdaq both closed at record highs although it could’ve been a much stronger breakout rip.
As for the bond market, 10-year Treasury yields are now at 4.325% and well off the lows yesterday near 4.250%. There has been quite a bit of pushing and pulling in this space, so traders still have to sort out their feet to find stronger appetite.
Looking to European trading today, there won’t be much notable releases on the agenda. So, it’ll be more of a pensive session for traders to reflect on the events yesterday and to decide how to proceed next.
0600 GMT – Germany May wholesale price index
0630 GMT – Switzerland May producer and import prices
0700 GMT – Spain May final CPI figures
0900 GMT – Eurozone April industrial production
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.
