The dollar is slightly firmer today, as markets continue to digest the post-Fed narrative with Wall Street having retreated after a modest recovery in the aftermath to the FOMC meeting. US futures are flat on the day but it is important to take note that broader market sentiment could rest on how equities fare relative to the technicals here heading into year-end.
Meanwhile, 10-year Treasury yields are little changed and keeping close to 3.50% after some back-and-forth moves following the Fed yesterday. The indecision is still keeping USD/JPY holding just above its 200-day moving average at 135.43, with the pair up 0.15% to 135.67 at the moment.
Looking away from the Fed, the central bank bonanza will continue in Europe today via the SNB, BOE, and ECB. The rate decision for all three is expected to be rather straightforward, with a 50 bps move expected across the board. In terms of policy nuances, I reckon the BOE will be the more interesting one to scrutinise. Otherwise, we might get more straightforward episodes later today barring any rate surprises.
In any case, this will all keep the respective major currencies and bond markets in focus before the hectic schedule winds down a fair bit more heading into tomorrow.
0700 GMT - Germany November wholesale price index
0745 GMT - France December business confidence
0830 GMT - SNB December monetary policy decision
1200 GMT - BOE December monetary policy decision
1315 GMT - ECB December monetary policy decision
1345 GMT - ECB president Lagarde press conference
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.
20 - France's 2-0 victory over Morocco makes them the first defending World Cup champions to make the finals in back-to-back tournaments since Brazil 20 years ago.
