A light one to kick start the new week

The dollar is keeping steady as we look towards European trading, with the yen trailing slightly as bonds continue to remain a key focus in the market.

The rise in short-end yields is something to be wary about as we are seeing a glimpse of that once again in early trades. US 2-year yields are up by over 2 bps to near 0.52% while 30-year yields are down 1 bps to 1.93%.

There's a lot to think about when digesting the moves in the bond market and that will certainly draw more interest ahead of the FOMC meeting later this week.

That will pretty much be the key risk event for all asset classes so one can perhaps expect traders and investors to tread more lightly in the run up.

For today, there isn't much on the agenda in Europe so we may be in for a quieter start to the new month. Risk tones are holding up with S&P 500 futures up 0.2% and the dollar is also holding relatively steady for the time being.

0700 GMT - Germany September retail sales data

Prior release can be found here. German retail sales activity is estimated to have held up in September, though rising cost pressures is something to be wary about as that could weigh on consumption going into year-end.

0830 GMT - Switzerland October manufacturing PMI

Prior release can be found here. Swiss manufacturing conditions have held up relatively well over the past few months but supply bottlenecks will continue to pose a problem going into next year, offsetting the more robust demand backdrop.

0900 GMT - SNB total sight deposits w.e. 29 October

Your weekly check of the deposits kept at the SNB by Swiss banks. This data is a proxy for FX interventions.

0930 GMT - UK October final manufacturing PMI

The preliminary report can be found here. The final readings should reaffirm what we already know i.e. supply bottlenecks weighing more heavily on output even as the headline may be flattered by elevated supplier delivery times.

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.