The three key things to watch in markets right now are the same as it was last week. That being the Israel-Hamas conflict, developments in the bond market as 10-year Treasury yields near 5%, and the threat of Tokyo intervention as USD/JPY knocks on the door of the 150.00 mark.
There is some easing in tensions among markets as an all-out war is yet to break out and we are seeing some tentative softening in risk-off flows at least. 10-year yields are now back up to near 4.98% while S&P 500 futures are up 0.2% on the day. In FX, the dollar remains in a decent spot especially with USD/JPY at 149.93 currently.
The week ahead will feature some key central bank meetings and big data. However, today is an exception as there won't be anything notable on the economic calendar. As such, the focus will remain on risk flows mostly and whether or not we will see breaks in 10-year Treasury yields and USD/JPY later on.
0800 GMT - SNB total sight deposits w.e. 20 October
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.
