The dollar was lightly softer in trading yesterday but key levels are still holding for the most part. With the Fed in focus, markets may not gather too much conviction until we get to the main event tomorrow.
Major currencies are little changed on the day, not hinting at much ahead of European morning trade. US futures are slightly softer after a mixed showing yesterday, also not looking in the mood until we get to the Fed decision. The bond market remains a pivotal spot to watch with key levels in play as outlined here. But we may not get any meaningful action until after the FOMC meeting.
In Europe, the Nord Stream pipeline capacity got cut again as another turbine has been taken down (as warned last week here). That is in effect going to see Germany face a gas shortage going into the winter months. A recession seems inevitable now.
Looking ahead, there isn't much on the data docket to shake things up so we are likely to just get some more pushing and pulling in the session ahead but watch out for the key technical levels in both FX and bonds as outlined above.
1000 GMT - UK July CBI retailing reported sales
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.
