There continues to be a lack of appetite for most of the major currency space, with the dollar generally holding more stable throughout the week in anticipation of today’s Fed.
EUR/USD continues to linger near 1.0500 and USD/JPY is also looking to hold above 130.00 for now. The ranges for the day are relatively tight, so European trading can be a bit calmer and sleepier honestly.
US equities managed to rebound for a second day in a row, but the general mood remains rather hesitant after last Friday’s strong selling. However, institutional players notably bought the dip, so that’s at least something interesting to watch as we’re stuck in the Fed this week.
Elsewhere, the bond market is also holding up for now, with yields remaining high but not really breaking new ground. 10-year Treasury yields continue to flirt with the 3% mark, awaiting a firm signal from the Fed to launch.
A lack of key economic releases will not help the lackadaisical mood ahead of European trading. Either way, it’s all about the Fed today, so the countdown period isn’t going to offer much anymore.
0600 GMT – March trade balance data from Germany
0715 GMT – Spain April PMI services
0745 GMT – Italy April Services, Composite PMI
07:50 GMT – France end-of-April services, composite PMI
07:55 GMT – Germany April Ending Services, Composite PMI
0800 GMT – Eurozone April Ending Services, Composite PMI
08:30 GMT – UK March mortgage approvals, credit data
09:00 GMT – Eurozone retail sales data for March
11:00 GMT – MBA mortgage applications in the US on April 29
That’s all for the upcoming session. I wish you all the best days ahead and good luck with your trading! May the 4 be with you. 😉