The euro is holding steadier ahead of the ECB policy decision later today, being the only currency to outperform the dollar in trading yesterday. That said, the gains are more measured and EUR/USD remains in consolidation ahead of the key risk event:
Risk tones were more sluggish yesterday as equities retreated, continuing the back and forth mood this week. That comes as Treasury yields rose once again with 10-year yields back above the 3% (currently at 3.038%). European bond yields also remain perky ahead of the ECB, awaiting tips about what the central bank may decide in July. 10-year German bund yields are at their highest since 2014, above 1.35%.
Going back to equities, there is still more of a consolidation phase as the push and pull plays out this week. The S&P 500 chart is rather evident of that:
We'll see if the ECB can kick start any fresh momentum in markets this week but given that this is likely a placeholder meeting, there might not be much in it. Those looking for clues about a 50 bps move next month may be disappointed, so that could be the reaction to be wary about.
1145 GMT - ECB announces June monetary policy decision
1230 GMT - ECB president Lagarde press conference
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.
