The rebound in European currencies is gathering strength today as money flows back into the continent on signs that governments will backstop consumer and business energy losses.
We'll be watching the ebb and flow of that trade today along with Treasury yields, which are down 5 bps across the curve.
The economic calendar is extremely light today with the Fed in its blackout period and no indicators scheduled. There are three-year and 10-year Treasury auctions at 1 pm ET and those will get some attention.
Tomorrow is the highly-anticipated August US CPI report and that's a potential watershed. The Sept Fed meeting is priced at 89% and I don't see that changing but a soft reading (particularly on core) could change the narrative for the Nov 2 meeting.
