Not a whole lot in Europe once again

Trading sentiment this week appears to be much to do with the ebb and flow as the market continues to digest the latest economic developments (supply bottlenecks, energy crisis) and the inflation debate for the most part.

The tough one to figure out is the bond market as yields have been dragged lower in recent days with 10-year Treasury yields lingering just below 1.53% currently, down from a high of 1.63% at the start of the week:


It's tempting to chalk this one up to flows and I would argue that is in some part at play this week but it will be interesting to see how the market takes to all of this over the next few weeks and if there is anything more to the latest moves.

Dollar bulls are also keeping more tentative as such but yen pairs continue to show a strong appetite for a further breakout from a technical perspective. On the latter, it is tough to fight the charts sometimes and this may be one of those cases.

Looking to Europe today, economic releases won't matter all too much once again so continue to keep an eye out for risk sentiment and the technicals for further clues.

0645 GMT - France September final CPI figures

The preliminary report can be found here. The final report should just reaffirm a similar trend across the region, where price pressures are seen rising towards Q4.

0900 GMT - Eurozone August trade balance data

Prior release can be found here. Overall trade conditions should improve as a trend over time as the recovery gradually picks up globally from the pandemic.

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.