A couple of light data points to move things along on the session


The more steady risk mood at the end of European morning trade turned into a slump by the end of North American trading yesterday as US stocks fell in the late hours.

That saw the S&P 500 and Dow close by over 1% lower, with the former taking out some key levels as it closed below 3,600 and the 2 September high around 3,588.

In my view, that sees buyers lose grip of the risk bias as we are now back in the territory where sellers are able to push for more significant momentum for the rest of the week.

The dollar also made some decent ground and is keeping mildly higher on the day alongside the yen, as we see the risk mood keep more tepid with US futures little changed and 10-year Treasury yields down by 2 bps to 0.85%.

The pound is weighed lower as cable failed at another push towards 1.3300 yesterday and after a report on the EU preparing for the worst on the Brexit outcome.

That sees cable now close in on its key hourly moving averages around 1.3209-21.

Essentially, the dollar bent in European trading but it did not break. The key technical levels are still largely intact though we are seeing USD/JPY keep below 104.00 but that is arguably owing to the continued push lower in Treasury yields this week.

Looking ahead, economic data isn't a major factor still on the week and the market will be left to its own devices again in figuring out how the risk bias is going to play out.

0700 GMT - Switzerland October trade balance data

Prior release can be found here. A general indication of trade conditions, which has gradually improved in recent months but still keeping below pre-virus levels.

0900 GMT - Eurozone September current account balance

Prior release can be found here. A read into the flows in/out of the euro area economy but this mostly reflects Q3 conditions and that isn't much of a key focus anymore.

1000 GMT - Eurozone September construction output data

Prior release can be found here. A minor and inconsequential data point as this relates to conditions during Q3, which the market has already factored in and moved past.

1100 GMT - UK November 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.

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.