Headlines:
- All eyes turn to the Fed's preferred measure of inflation next
- USD/JPY volatility stays in focus after the bounce yesterday
- US futures continue to pull higher on the day
- France July consumer confidence 91 vs 90 expected
- Eurozone consumers see inflation at 2.8% in the next 12 months - ECB survey
- Trump wants a weaker dollar but will he get his wish?
Markets:
- AUD leads, JPY lags on the day
- European equities higher; S&P 500 futures up 0.7%
- US 10-year yields down 1.9 bps to 4.236%
- Gold up 0.4% to $2,373.24
- WTI crude down 0.3% to $76.85
- Bitcoin up 3.0% to $67,231
Markets are taking a bit of a breather today, following the volatile risk selloff in the last few days.
Equities are faring better with S&P 500 futures seen up 0.7% as tech shares are finding some respite. European indices are also holding higher, with the French CAC 40 index seen up 0.9% though still largely down on the week.
In FX, USD/JPY is also keeping with the overnight bounce in a push to 154.70 from around 153.80 earlier in the session. The 100-hour moving average for the pair is seen at 154.83 and will be a key near-term level to watch before the weekend.
As we see traders sense some relief, AUD/USD is also seen higher by 0.3% to 0.6560 while USD/CHF is also up 0.2% to 0.8835 on the day. The latter fell to its lowest since March yesterday but staved off a firm break below 0.8800 at least.
In other markets, gold is also up 0.4% to $2,373 while Bitcoin is up roughly 3% to $67,231 currently.
It's all pointing to just a bit of respite as all eyes turn to the US PCE report next. That will be the make or break for overall sentiment before we close out the week.
