The dollar is trading a little mixed on the day, keeping higher against the yen but lower against the aussie. The former continues with the moves from the end of last week, with a slight bounce in bond yields also helping. 10-year Treasury yields are up another 2.6 bps to 3.741% currently. As for the aussie, the RBA beckons tomorrow but no change to the cash rate is expected.
In other markets, US futures are higher after a bit of a mixed showing in Wall Street towards the end of last week. Tech shares are rebounding with Nasdaq futures up 0.6% and S&P 500 futures up 0.3% currently.
Central banks will continue to stay in focus this week amid the RBA and SNB policy decisions. But there’s also going to be plenty of Fedspeak in an otherwise rather lackadaisical calendar in terms of US releases.
For trading today, PMI data is in focus and we’ll get notable ones in Europe from France and Germany. The data should just continue to point to stagnating conditions at the end of Q3 for the euro area. The manufacturing recession in the region remains a drag while services is starting to show signs of cooling after a better showing in 1H 2024.
Nonetheless, this won’t change the ECB outlook for next month. A pause is imminent before they might think about cutting rates again in December.
0715 GMT – France September flash manufacturing, services, composite PMI
0730 GMT – Germany September flash manufacturing, services, composite PMI
0800 GMT – Eurozone September flash manufacturing, services, composite PMI
0800 GMT – SNB total sight deposits w.e. 20 September
0830 GMT – UK September flash manufacturing, services, composite PMI
1000 GMT – UK September CBI trends total orders
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.