The dollar is slightly lower as we get into the thick of things today, as risk trades are buoyed following Nvidia's earnings beat. EUR/USD is up 0.2% to 1.0838 while GBP/USD is up 0.1% to 1.2645 currently. USD/JPY is down 0.1% to 150.20 with slightly lower yields also factoring in to start the day.
Amid the more optimistic risk mood, commodity currencies are also faring well thus far. USD/CAD is down 0.2% to 1.3475 while NZD/USD is continuing its break higher to just above 0.6200 now. In the equities space, the Nikkei just closed at a fresh record high after over 2% gains to 39,098.68. The positive mood is carrying over to Europe with S&P 500 futures up 0.8% and Nasdaq futures seen up 1.6% currently.
Looking to the session ahead, PMI data will be a focus point as we look towards the latter stages of the week. In all likelihood, risk sentiment should stay buoyed from the Nvidia tailwind but we'll see if there are any surprises on the data docket to shake things up.
But as traders are now becoming more aligned with central bank thinking on rate cuts, I reckon the impact of any data surprises should be less than what we saw in January and early February.
0745 GMT - France February business confidence
0815 GMT - France February flash manufacturing, services, composite PMI
0830 GMT - Germany February flash manufacturing, services, composite PMI
0900 GMT - Eurozone February flash manufacturing, services, composite PMI
0930 GMT - UK February flash manufacturing, services, composite PMI
1000 GMT - Eurozone January final 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.
