A more hawkish ECB was the highlight in trading yesterday, and that sent stocks reeling while the dollar gained strongly as risk retreated amid growing global growth worries. It seems like we might just be getting to the point where bad news is bad news after all again.
The dollar is trading slightly lower today as traders continue to digest the takeaways from the major central bank meetings this week. All else being equal, the technical break lower in stocks is a key development to take note of and that might be a catalyst for the greenback to find firmer footing before the weekend.
That just adds to the more hawkish rhetoric from the Fed this week and if it is the case of markets growing more worried about the economic outlook, then such sentiment will also only serve to underpin the dollar at the end of the day.
Looking ahead, PMI data will be a focus in Europe and that could set off some volatility in the risk mood on the session. Judging by how markets have taken in the recent headlines this week, a downside surprise on the figures is likely to be a drag for the euro and for equities in the session ahead - should we see any notable reaction that is.
0700 GMT - UK November retail sales data
0815 GMT - France December flash manufacturing, services, composite PMI
0830 GMT - Germany December flash manufacturing, services, composite PMI
0900 GMT - Eurozone December flash manufacturing, services, composite PMI
0930 GMT - UK December flash manufacturing, services, composite PMI
1000 GMT - Eurozone October trade balance data
1000 GMT - Eurozone November final 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.
2 - Both France and Argentina have won the World Cup twice each previously. Les Bleus were triumphant in 1998 and 2018 while La Albiceleste were winners of the 1978 and 1986 editions.
26 - Lionel Messi's appearance in the final will make him the (male) player with the most appearances at a World Cup, with 26 matches - surpassing Lothar Matthäus on 25 matches. Meanwhile, France has never lost a game when leading at half-time in a World Cup match out of 26 matches with such a scenario (25 wins, 1 draw).
