Broader market sentiment is keeping steadier so far today, after a rousing risk rally following Fed chair Powell's remarks yesterday. Powell relented on the central bank's more aggressive approach to tightening policy and that was enough to send markets roaring.
S&P 500 futures are up 7 points, or 0.17%, currently but the optimistic turn yesterday is something to take note of as the cash market broke above its 200-day moving average for the first time since April. Treasuries were also strongly bid yesterday, with 10-year yields dropping by 13 bps to around 3.61% coming into today.
Meanwhile, the dollar was sold off heavily and we are back to contesting key technical levels as outlined here with USD/JPY even breaking to fresh lows since August, targeting 135.00 next.
Trading sentiment will continue to revolve around the post-Powell mood as markets slowly turn their attention to the US non-farm payrolls tomorrow. There will be a few releases in Europe to move things along but nothing that should impact markets all too much.
0700 GMT - Germany October retail sales
0700 GMT - UK November Nationwide house prices
0730 GMT - Switzerland November CPI figures
0815 GMT - Spain November manufacturing PMI
0830 GMT - Switzerland November manufacturing PMI
0845 GMT - Italy November manufacturing PMI
0850 GMT - France November final manufacturing PMI
0855 GMT - Germany November final manufacturing PMI
0900 GMT - Eurozone November final manufacturing PMI
0930 GMT - UK November final manufacturing PMI
1000 GMT - Eurozone October unemployment rate
1230 GMT - US November Challenger layoffs, job cuts
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.
3 - Tunisia's historic 1-0 win against France is only their third ever victory at the World Cup stage. It is also only the third time that the reigning World Cup champions have been beaten by African opposition in any edition of the tournament. Coincidentally, one of those involved France as well - who lost 1-0 to Senegal in 2002.
