The selling in the bond market has been the key driver of market moves again in the past few sessions, with 10-year Treasury yields rising back above 3% at the start of this week. Yields are now hovering near 3.05% - its highest in four weeks.
That has seen USD/JPY skyrocket to a technical breakout above 132.00, the first time in two decades. There is little standing in the way of a push towards 135.00 next for the pair, at least if you go by the charts. A resumption of a move higher in yields and USD/JPY is helping to keep the dollar steady, holding its ground against most major currencies.
Equities have been more choppy as of late, with the bond selling starting to invite more concerns once again. The storm clouds involving inflation and the darkening economic outlook are still brewing and that won't offer much comfort for investors to sit still with risk bets.
There won't be much in Europe to shake things up today so expect the same push and pull to dominate market proceedings.
0600 GMT - Germany April factory orders
0700 GMT - Switzerland May foreign exchange reserves
0730 GMT - Germany May construction PMI
0830 GMT - UK May final services PMI
0830 GMT - Eurozone June Sentix investor confidence
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.