Economic data coming up in the European session
A light one on the data docket
Well, the Thanksgiving holiday period is certainly not looking to be a quiet one as risk trades are slammed with bond yields in particular leading the way down.
The latest interest on the new COVID-19 variant emerging from South Africa is arguably the key risk factor that is weighing on sentiment. Adam has more on that here.
You can also blame it on exacerbated moves involving thinner liquidity conditions in general but it is what it is with 2-year Treasury yields down 6 bps to 0.583% and 10-year yields down 8 bps to 1.563% on the day so far.
Elsewhere, European stock futures are down nearly 2% while S&P 500 futures are down 1% as we look towards the session ahead. The dour mood is leading to a straightforward risk-off move in FX amid lighter trading conditions.
Looking ahead, economic data will do little to change the mood music but keep in mind that with thinner liquidity in trading today, we could see further exacerbated moves in the market before the weekend comes along.
0700 GMT - Germany October import price index
Prior release can be found here. Another month, another anticipated increase in import prices as this keeps with the trend of rising cost pressures across the region.
0745 GMT - France November consumer confidence
Prior release can be found here. French consumer morale is estimated to be little changed as economic expectations hold thereabouts on the month.
0800 GMT - Switzerland Q3 GDP figures
Prior release can be found here. The Swiss economy is likely to have seen a modest expansion in Q3 but the outlook for the remainder of the year and going into next year is the more important focus right now and that is one that is dampened by supply constraints and rising cost pressures - similar to the rest of the region.
0900 GMT - Eurozone October M3 money supply data
Prior release can be found here. A look at broad money growth in the euro area, which should just reaffirm a continuation of the ECB keeping the liquidity taps open.
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.