It is a calmer start to the new day as we start to settle into a bit more of a push and pull before the FOMC meeting next week. Equities observed a positive start yesterday only to falter by the end of the day as the storm clouds dampened the mood.
The dollar is off to a slow start on the week but we are seeing some key levels hold with EUR/USD backing away from 1.0200 and GBP/USD away from 1.2000. That reaffirms the narrative that dollar bulls are still in the picture for now. As for USD/JPY, be wary of large option expiries at 138.00 today, so that could keep price action more anchored.
As we look towards European trading, risk tones are steadier with US futures up 0.2%. The aussie and kiwi are also holding decent gains with AUD/USD up 0.4% to 0.6840 and NZD/USD up 0.3% to 0.6170 at the moment. I wouldn't look much into it though unless equities are able to sustain gains but yesterday's turnaround was not too encouraging for the bigger picture.
On the agenda in Europe today, we will have UK labour market data but it shouldn't be of much impact before we get to the final consumer inflation readings in the Eurozone for June.
0600 GMT - UK June claimant count change
0600 GMT - UK May ILO unemployment rate
0600 GMT - UK May average weekly earnings
0630 GMT - Switzerland June trade balance
0900 GMT - Eurozone June 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.
