A summary of headlines concerning the dollar right now:
- US dollar decline accelerates as Waller takes a dovish turn
- US Treasuries yields slammed lower in Asia. 2 yr to a 4 month low
- The bond market hints at more pain to come for the dollar
And after calling for a top in bond yields, guess who is now calling for earlier than expected Fed rate cuts? That is certainly getting markets to listen and we are seeing a further retreat in Treasury yields today. That will be the main focus in the session ahead, with the dollar weakness also in the spotlight.
As for European trading, the two main data releases will be the German and Spanish consumer price inflation reports. For the former, there will be state readings that will come before. German inflation should see price pressures ease further on the month but Spanish inflation is expected to trend a little higher, although the core reading might still show signs of subsiding.
That will keep the euro interested as well in European morning trade, alongside the continued focus on the bond market and the dollar.
0700 GMT - Germany October import price index
0800 GMT - Spain November preliminary CPI figures
0900 GMT - Switzerland November Credit Suisse investor sentiment
0930 GMT - UK October mortgage approvals, credit data
1000 GMT - Eurozone November final consumer confidence
1000 GMT - Eurozone November economic, industrial, services confidence
1200 GMT - US MBA mortgage applications w.e. 24 November
1300 GMT - Germany November preliminary CPI figures
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.
