The dollar is recovering some poise after being faced with a round of corrective selling yesterday as bonds rallied hard in one of its best days in recent memory. 10-year Treasury yields tumbled by 22 bps to 3.73% while 10-year gilt yields fell by 50 bps to 4.00% after the BOE announced that it would conduct QE-style intervention to try and restore market order.

As we approach the end of the week, month-end and quarter-end trading will also be a factor and rebalancing flows could also be playing a part in the bond market as seen yesterday. As for major currencies, Citi is warning that its model is pointing towards USD buying and further EUR selling as noted here.

Even though the dollar was sold off yesterday, it is barely a dent to the momentum over the past few weeks. But at least broader markets are able to seek a breather perhaps for the time being.

Looking ahead, German and Spanish inflation will keep the scrutiny on the ECB but all eyes will stay on the gilt market and bonds as to how the reaction to the BOE announcement will continue to play out before the weekend.

0700 GMT - Spain September preliminary CPI figures
0900 GMT - Eurozone September final consumer confidence
0900 GMT - Eurozone September economic, industrial, services confidence
1200 GMT - Germany September preliminary 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.