A couple of light releases to move things along
It was an ugly day for risk trades yesterday as equities tumbled while Treasuries were bid with such strong force that it certainly sparked a wave of risk aversion that the market has not dealt with in many months.
There is little need to skirt around the size of the moves, it was a big blow to risk.
In particular, because many key levels are being taken out on the charts. The big one to watch remains the bond market as 10-year yields keep below 1.20%:
There is a light bounce so far today but after the drop of nearly 11 bps yesterday, this may just be a brief reprieve as bond buyers take a breather.
Elsewhere, US futures are also keeping a light bounce but commodity currencies are still pressured as the dollar holds steadier after a modest advance to its highest levels since April in trading yesterday.
Expect more of the same i.e. risk sentiment and technicals to drive price action today. But after the big and ugly moves yesterday, perhaps there is some room for a breather before the market starts to get back into worrying again.
0600 GMT - Germany June PPI figures
Prior release can be found here. General indication of price pressures in the German economy, which should continue to tick higher amid supply disruptions.
0600 GMT - Switzerland June trade balance data
Prior release can be found here. Trade conditions are still working towards pre-pandemic levels and that should continue to be the trend in the months ahead.
0800 GMT - Eurozone May current account balance
Prior release can be found here. An indication of flows in/out of the euro area, which is still slowly picking up and moving back to pre-pandemic levels.
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.
