Major currencies aren't up to much today, with the dollar keeping steadier after its fall yesterday. USD/JPY did bounce back from lows under 140.00 to around 140.70 now, with the high earlier touching 141.25. There's still much volatility in the pair compared to the others but this week, it's all about the Fed.
The bond market also continues to be one to watch, as outlined here. Meanwhile, equities saw a more mixed showing with tech shares weighed lower yesterday but the Dow closed at a fresh record high. The S&P 500 isn't too far away from that as well and that sets the tone ahead of the Fed with market players leaning more towards a 50 bps rate cut now. Setting up for disappointment?
There won't be much in the session ahead to really influence markets. But later on in US trading, there is the retail sales data to watch. At the balance, it shouldn't be too meaningful in deciding the Fed odds tomorrow. However, given how traders are positioning now, a bad report there might further stoke the fires of those expecting a 50 bps rate cut.
That will put the ball back to the Fed's court. Will they get bullied into another decision again?
0900 GMT - Germany September ZEW survey current conditions, outlook
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.
