Final March services PMI for the euro area due today
The dollar saw a retreat yesterday once again as Treasury yields were bid, with there looking like there is a ceiling in place for now closer to 1.75% for 10-year yields.
With a stellar non-farm payrolls and solid ISM services report failing to jolt bond sellers into chasing a further move, there might be some push and pull between 1.60% and 1.75% for now with the former a likely focal point given the failure to extend higher.
As such, that may keep some short-term pressure on the dollar. US equities pulled back a little yesterday but if the yields momentum is seeing a stall, that may yet set up a thriving environment for stocks as the Fed put is still in play.
The FOMC meeting minutes release will be one to watch in the day ahead. Otherwise, the market focus will remain on risk sentiment and bond yields once again.
0715 GMT - Spain March services, composite PMI
0745 GMT - Italy March services, composite PMI
0750 GMT - France March final services, composite PMI
0755 GMT - Germany March final services, composite PMI
0800 GMT - Eurozone March final services, composite PMI
Focus will be on the final readings in France, Germany and overall Eurozone. The services sector remains somewhat hampered by tighter virus restrictions but have seen some improvement relative to the start of the year at least. The stellar manufacturing sector performance is likely to help offset a lot of the pessimism but the outlook remains rather sketchy given how the virus situation is playing out.
0830 GMT - UK March final services, composite PMI
The preliminary release can be found here. As the UK looks to ease restrictions going into April, business optimism is improving rather quickly and the rebound in services sector activity last month already reflects that. The final release here should reaffirm that.
1100 GMT - US MBA mortgage applications w.e. 2 April
Weekly US housing data, measures the change in number of applications for mortgages backed by the MBA during the week. Amid the sudden turn higher rates this year, recent mortgage activity has dipped with purchases falling sharply alongside refinancing activity so it'll be one to watch out for.
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.
