A light one on the data docket today
The 'sell the rumour, buy the fact' play was what worked out for Treasuries in reaction to the US CPI data, alongside strong demand from the 30-year notes auction.
That pinned yields lower but it is still holding around the soft bottom close to 1.60% for now, so any further pullback may have to wait for a bit.
The dollar was weaker as a result and that saw the greenback give up some ground via key technical levels across the board.
EUR/USD looks to settle into a higher range above 1.1900 and its 200-day moving average, with buyers eyeing a test of the resistance region at 1.1990-00.
USD/JPY is slowly sliding back under 109.00 and a firm daily break below the figure level could leave the dollar more vulnerable to a further drop this week.
Elsewhere, USD/CAD is also renewing some downside pressure towards the 5 April low near 1.2500 and AUD/USD is looking to break back above its 100-day moving average, trendline resistance @ 0.7650, and resistance region @ 0.7556-64.
For the latter, the 7 April high @ 0.7677 is also one to watch as that could see buyers extend a breakout towards 0.7700 next if that gives way.
Looking ahead today, the Coinbase IPO will be one to watch for the market in general as it buoys sentiment surrounding cryptocurrencies and the Nasdaq.
But the key spot to watch remains yields as it is looking like the start of Q2 will see things settle down a bit. That, as there seems to be a high threshold to stoke bond sellers' appetite in chasing the next leg - after having seen upbeat US NFP, ISM services, PPI, and CPI reports all brushed aside over the past two weeks.
0700 GMT - Spain March final CPI figures
The preliminary report can be found here. As this is the final release, it shouldn't offer much besides reaffirm stronger price pressure amid base effect adjustments.
0900 GMT - Eurozone February industrial production data
Euro area industrial output is estimated to reflect a decline after the surprise drop seen in the German reading last week here. That said, this is a lagging release with much of the focus still being on the vaccine and economic outlook in 2H 2021.
1100 GMT - US MBA mortgage applications w.e. 9 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.
