The dollar caught a strong tailwind in trading yesterday, benefiting off a surge higher in Treasury yields as it pulled back from some key technical levels earlier in the week. Let's recap:
- USD/JPY came close to testing its 100-day moving average (130.37 currently) and the 130.00 mark yesterday before pulling back up to near 133.00 in another wild week of swings
- EUR/USD is dragged back under 1.0200 after being rejected by the 50.0 Fib retracement level at 1.0283
- Cable is also trading back under 1.2200 in a bit of a blow to buyers as price also dips back below its 100-hour moving average (1.2190 currently)
- USD/CAD kept a defence of its own 100-day moving average earlier in the week to push back above 1.2800 - now seen at 1.2850 levels
- AUD/USD is being pushed back under 0.7000, falling short of testing its 61.8 Fib retracement level at 0.7053 with a less hawkish RBA also weighing on aussie sentiment
There's still plenty of pushing and pulling going on and US-China tensions this week isn't making it easier to settle on that ahead of the US jobs report on Friday. That will be a big one with the Fed having stressed on data dependence ahead of September.
Looking ahead today, there won't be much on the agenda to really move markets but the final PMI readings in the euro area should just reaffirm a significant slowdown in economic activity to start Q3.
0600 GMT - Germany June trade balance data
0630 GMT - Switzerland July CPI figures
0715 GMT - Spain July services PMI
0745 GMT - Italy July services, composite PMI
0750 GMT - France July final services, composite PMI
0755 GMT - Germany July final services, composite PMI
0800 GMT - Eurozone July final services, composite PMI
0830 GMT - UK July final services, composite PMI
0900 GMT - Eurozone June PPI figures
0900 GMT - Eurozone June retail sales data
1100 GMT - US MBA mortgage applications w.e. 29 July
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.