It is shaping up to be that kind of a session

Author: Justin Low | Category: News

A slow and steady start in Europe for now

The market is keeping steadier after a mixed start to the new week, with the dollar holding its ground and trading a touch higher to start the session.

WCRS 13-01
That said, the moves are nothing that stands out all too much as we also observe more tepid tones in the equities space this morning.

AUD/USD is down to session lows of 0.7747 but still keeping above its 100-hour moving average @ 0.7740. Meanwhile, USD/CAD is now running into a test of its own 100-hour moving average @ 1.2729 as the dollar tries to wrestle back some momentum.

European indices are mildly softer but little changed, while 10-year Treasury yields are sitting lower at 1.11% - keeping a retreat after the drop yesterday.

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The market seems content to be settling into a rather slow and steady mood, awaiting a key day tomorrow as Biden will unveil his fiscal package and trillions in spending.

That will be a crucial factor to watch with regards to the reflation trade narrative, following the breakout in Treasury yields after the Georgia runoffs last week and as the Fed continues to offer some push and pull with regards to 'taper' talk.

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