Just a few minor data releases once again today in Europe
The dollar was beaten down in trading yesterday as the market appears to be dealing with two separate timeline focuses on US stimulus talks. Treasuries were also softer as yields broke out to their highest since June, with 10-year yields climbing above 0.80%.
Meanwhile, US equities saw any hint of gains fizzling throughout the session as Mnuchin and Pelosi continue to do the same old dance ahead of 3 November.
A pre-election deal isn't coming and that largely kept equities in-check yesterday but Treasuries seem to be looking towards a stimulus package to come after the election.
As for the dollar, it could be dragged lower on fading stimulus hopes in the near-term i.e. no reprieve for the economy or it could also be part of some early reflation trade signal that is being reflected in the bond market.
It is a tough one to make sense of but the charts don't lie as the dollar is being stretched on the technical front, though it is slightly retracing losses in trading today.
Looking ahead, there is little on the agenda to really distract from the few key focus areas in the market i.e. stimulus talks and Brexit. Expect more of the same in the day ahead.
0600 GMT - Germany November GfK consumer confidence
Prior release can be found here. Amid the resurgence of virus cases in Europe, consumer morale is expected to ease slightly as the optimism over the summer begins to fade more strongly towards the year-end.
0645 GMT - France October business confidence
Prior release can be found here. Confidence levels are expected to keep more steady on the month but amid concerns surrounding the virus situation, economic sentiment may not look too bright heading into the latter stages of Q4.
1000 GMT - UK October CBI trends total orders, selling prices
Prior release can be found here. The CBI readings are a survey on manufacturers to rate the level of volume for orders expected during the next 3 months. A minor data point.
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.
