For a second day running, we saw some notable selling in Wall Street and that translated to dollar strength after a bit of a sluggish showing by the greenback in European trading yesterday. The greenback is keeping a touch higher today with the overall market mood fairly more tepid but it is still early on.
S&P 500 futures are flat while Treasury yields are mildly higher, though we are seeing USD/JPY push towards 137.75 currently after a break above its 200-hour moving average at 137.23 earlier in the day:
The 23.6 Fib retracement level of the downswing since October stands at 137.94 and will act as the next resistance point for the pair before a potential correction back towards 140.00 after the heavy selling in the past few weeks.
There will be some light data points coming up later in European trading but none of which should impact trading sentiment all too much. As such, the key drivers will remain the risk mood and the technicals as we look to sort out the choppy flows before the major events on the calendar next week.
0645 GMT - Switzerland November unemployment rate
0700 GMT - Germany October industrial output
0700 GMT - UK November Halifax house prices
0745 GMT - France October trade balance data
1000 GMT - Eurozone Q3 final GDP figures
1200 GMT - US MBA mortgage applications w.e. 2 December
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.
2 - After their shock exit to Morocco, Spain becomes only the second team not to score a single attempt in a World Cup penalty shootout.
