Economic data coming up in the European session
The BOE is the main event to watch today
The aussie was dragged down earlier amid reports of China suspending a key economic dialogue between the two countries, as geopolitical tensions continue to mount.
AUD/USD took a 50-pip hit from 0.7750 to 0.7701, also being rejected by its 200-hour moving average @ 0.7755, before finding a bit of footing now around 0.7720-30.
The dollar is keeping steadier overall with EUR/USD still hugging the 1.2000 level while GBP/USD is holding near 1.3900 and playing around the confluence of its key hourly moving averages @ 1.3884-97 as well since yesterday.
Treasury yields saw a bit of a retreat overnight but is holding a little higher around 1.58% while US futures are little changed after a mixed session yesterday that saw tech stocks slump towards the latter stages while the Dow closed at a record high.
Looking ahead, all eyes will be on the pound as the market continues to fixate on the inflation narrative (the Fed has been actively talking things down since Yellen) before getting to the US non-farm payrolls report tomorrow.
0600 GMT - Germany March factory orders data
Prior release can be found here. German industrial orders are expected to keep with the bounce to start the year, with the annual reading set for a big spike amid base effect adjustments due to the pandemic impact in March last year.
0730 GMT - Germany April construction PMI
Prior release can be found here. Construction activity remains more subdued largely due to commercial activity failing to pick up and while conditions are still not much better last month, things should be on the up amid expectations going into 2H 2021.
0830 GMT - UK April final services, composite PMI
The preliminary report can be found here. As looser virus restrictions kick into place, the initial estimates showed some stellar readings and the final report today should just reaffirm that - alongside more optimistic expectations in the months ahead.
0900 GMT - Eurozone March retail sales data
Prior release can be found here. Euro area retail sales activity is estimated to push a little higher in March but overall conditions are still trailing behind pre-virus levels for the most part and will take time before a stronger recovery is observed.
1100 GMT - BOE announces its May monetary policy decision
The prior (March) decision can be found here. There is a chance for the BOE to surprise by making a taper call today and that may have the propensity to jolt the pound higher if they really do pursue such a step. It would be a stark difference from their general tone since March but that cannot be ruled out. If not, expect more hawkish tones to follow from the BOE, if anything else, to try and tee up a potential taper going into June/August as the UK economy reopens and rebounds from the pandemic. They will surely still pledge patience and a "wait-and-see" approach but if the economy runs hot, they can only put off talk of tightening policy for so long.
1130 GMT - US April Challenger job cuts, layoffs
Prior release can be found here. The data provides information on the number of announced corporate layoffs by industry and region and acts as a general labour market indicator. A bit of a reminder that it is NFP week.
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.