Products You May Like
The dollar continues to keep in a good spot, with the euro and pound notably slumping heavily. The latter two are not helped by worsening technical predicaments with EUR/USD testing its 2020 low of 1.0635 and GBP/USD failing to find much reprieve, sinking to its lowest level since July 2020 as sellers eye the 1.2500 level.
The selloff in bonds may be taking a breather, with some safety flows perhaps playing a part as equities continue to struggle to stay afloat. The near 3% drop in the S&P 500 yesterday sees it near its February and March lows, as stock struggle amid the backdrop of persistent inflation, rising rates, and suspect economic outlook.
The drop in the Nasdaq in particular is worrying, as it falls past its 38.2 retracement level of the swing higher from the pandemic rally:
The same old themes above will be the things to watch, with month-end flows adding to the mix. Economic data will continue to take a backseat for today with no major releases of note in European trading.
0600 GMT – Germany May GfK consumer sentiment
0645 GMT – France April consumer confidence
0800 GMT – Switzerland April Credit Suisse investor sentiment
1000 GMT – UK April CBI retailing reported sales
1100 GMT – US MBA mortgage applications w.e. 22 April
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.