It is a brand new week, month, and quarter. 3/4 of the year is gone and we now welcome the month of October. The bond market is still holding all the cards really, as Treasury yields are slowly inching higher. 10-year yields are up to 4.61% today and that is helping to keep the dollar in a solid spot. Here are two key developments from the weekend and earlier today:
Equities are also finding some bit part relief with S&P 500 futures seen up 0.4% but just be wary that the selling in bonds could impact sentiment later in the day. That especially now that month-end and quarter-end is out of the way.
As for the dollar, it's still tough to argue against the greenback with USD/JPY inching towards 150.00 in general. EUR/USD is down 0.1% to 1.0560 after failing to get above 1.0600 at the end of last week. Meanwhile, AUD/USD is down 0.6% today to 0.6395 after another failed attempt to push past 0.6500 on Friday.
Then, we also have gold struggling hard with another 0.4% fall to $1,840 levels at the moment.
Looking over to European trading, manufacturing PMIs will be a focus point. However, they shouldn't tell us anything we don't already know with it being final readings for France, Germany, Eurozone, and the UK.
As such, the focus will stay on the bond market and how the developments there will continue to impact broader market sentiment.
0600 GMT - UK September Nationwide house prices
0630 GMT - Switzerland August retail sales
0715 GMT - Spain September manufacturing PMI
0730 GMT - Switzerland September manufacturing PMI
0745 GMT - Italy September manufacturing PMI
0750 GMT - France September final manufacturing PMI
0755 GMT - Germany September final manufacturing PMI
0800 GMT - Eurozone September final manufacturing PMI
0800 GMT - SNB total sight deposits w.e. 29 September
0830 GMT - UK September final manufacturing PMI
0900 GMT - Eurozone August unemployment rate
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.
