It is a slower start to the day but the action should pick up again later as we move towards US trading surely. It is a setup before the long weekend and today also marks the quadruple witching period, so that should add to the volatility in markets.
The dollar succumbed to a beating yesterday and the technicals sure aren't looking good now for the greenback. There is scope for further weakness and we'll see if that will continue later on today.
The ECB didn't offer up much surprises but Lagarde more or less hinted that July will certainly be a rate hike. And that is enough for markets to be convinced of one and the euro has benefited as a result. EUR/USD is trading back up above 1.0900, eyeing the 1.1000 mark but keep in mind that there are large option expiries today that could mess with price action a little.
The yen is among the biggest losers this week with no thanks to the BOJ as well, as they decided to maintain the ongoing dovish monetary policy stance earlier in the day. We're seeing a couple of rocketing moves in EUR/JPY, GBP/JPY, and CHF/JPY with the likes of AUD/JPY and NZD/JPY potentially joining the fray of higher breakouts.
Looking ahead today, there isn't much on the data docket to shake things up in Europe. We've only got the final reading for Eurozone May CPI and that should reaffirm what we already know from the initial readings here and via the ECB yesterday.
0900 GMT - Eurozone May final CPI figures
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.
