The equities bounce this week and lower bond yields is definitely giving plenty of food for thought. And alongside the poor PMI readings all over the place yesterday, it is making for some potential fake-outs on the breakouts that we have seen in the past few weeks.
10-year Treasury yields especially rose to 4.36%, its highest level since 2007, before reversing lower now to 4.21%. That has seen USD/JPY slide back below 145.00 but the pair is now inching just above the figure level again so far today. In turn, we are also seeing gold rise back to $1,920 after having broken below its 200-day moving average in a fall to its lowest levels since March last week.
Besides that, WTI crude climbed above $84 to its highest levels since November last year before turning lower now to keep just above $78 on the week. Even AUD/USD which looked dead to rights in a drop below 0.6400 last week is now recovering to near 0.6500 today.
There's plenty for markets to digest right now and all of this continues to revolve around the key narrative here.
For now, equities are buoyed as the latest round of bad data means lower odds of central banks tightening further. Adding to that is the whole build up and cheer on Nvidia's earnings overnight. We'll see if the more optimistic mood will translate to a more risk positive session in FX later in the day.
0645 GMT - France August business confidence
1000 GMT - UK August CBI retailing reported sales
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.