Once again, Wall Street holds all the cards in terms of trading sentiment
European equities are mixed in trading today, though the DAX is seeing decent gains of just over 1% on the session. But the risk mood is not hinting at much with US futures keeping closer to flat levels ahead of North American trading.
It has been a choppy first three days to the week, with US indices rising yesterday on the back of a late rally in the final hour. But the overall mood was enough to keep the dollar pressured, though it hasn't led to much notable technical changes.
Well, except maybe for cable as the pound stays in the hunt for a fifth straight day of gains as buyers look poised to try and target the 200-day moving average.
EUR/USD is trading back under the swing region around 1.1340-50 with AUD/USD unable to break 0.7000 and NZD/USD also keeping just below the June highs @ 0.6580-85. USD/CAD is also seen holding just above its 200-day moving average @ 1.3500.
So, in terms of major changes to trading sentiment in currencies, we're not quite there yet.
Looking ahead, US weekly jobless claims will come into focus but I reckon that is unlikely to offer much to investors in the day ahead.
A lot of emphasis will go back to US virus figures to see how the constant rise in cases will start affecting economic conditions and also the death count as time passes.
Wall Street investors will have some food for thought from a record daily rise in cases for Tokyo and Hong Kong as well, so let's see if we will get more choppy price action towards the final few days of the trading week.
