It is gut check time for the market

Market distress and dislocation is on the back of everyone's minds as we look towards the final trading day of the week, and how those fears manifest or if they are soothed will be the key driver of price action ahead of the weekend.

The impeccable rout in the bond market yesterday led to a firm risk-off tone, with equities extending declines for the most part today. That comes despite somewhat calmer tones in the Treasury market so far in the day.

The dollar is keeping more bid across the board, though the euro is also holding its own as EUR/GBP pushes higher with the pound correcting lower after its strong run since the start of the year. The pair is now touching 0.8700 - its highest levels in over a week.

Economic data won't matter whatsoever on a day like this. All eyes will be on the bond market again and whether or not investors can take comfort from other clues i.e. stimulus vote to follow today (?) or Fed speakers to offer some reassurance (?).

0700 GMT - Germany January import price index

Prior release can be found here. A lagging and proxy indicator of price pressures in the German economy. Low-tier data.

0745 GMT - France February preliminary CPI figures

Prior release can be found here. French inflation is expected to tick a little lower after the January spike, reaffirming the more choppy and unbalanced trend likely to prevail in the first-half of the year for the most part.

0745 GMT - France Q4 final GDP figures

The preliminary report can be found here. This should just reaffirm the likelihood of a double-dip recession with the French economy contracting in Q4 last year.

0800 GMT - Switzerland Q4 GDP figures

Prior release can be found here. Swiss GDP is expected to stagnate near flat levels in the final quarter of last year, with tighter restrictions weighing on economic activity.

0800 GMT - Switzerland February KOF leading indicator index

Prior release can be found here. The data measures the future trends of overall economic activity in the Swiss economy. A minor data point.

0800 GMT - Spain February preliminary CPI figures

Prior release can be found here. Spanish inflation is estimated to keep steadier to start the new year although much like the rest of the region, the trend is one that is hard to really look too much into given temporary factors at play (which will be more evident in the coming months) for the most part in 1H 2021.

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.