Treasury yields are continuing to hold a little heavy since the retreat yesterday, with 2-year yields down another 3.5 bps to 4.135% now. 10-year yields are also down 1.7 bps to 3.528% and that is weighing slightly on yen pairs as we get stuck into trading today.
The dollar is keeping more mixed, as it holds a slight advance against the antipodeans. AUD/USD is down 0.4% to 0.6713 after running into a test of its 200-day moving average at 0.6741. I would argue that is what's driving the slight nudge lower, as opposed to any headlines running through so far.
Equities seem rather muted after a sluggish day in Wall Street overnight but perhaps market players are waiting on the PMI data later in Europe before making any moves before the weekend.
We will be getting preliminary figures for April and the estimates are pointing to economic activity being somewhat on par with what we have seen in March - which at least shows modest recovery momentum since the end of last year. On the balance of things, the data today should just reaffirm the ECB's conviction to act next month but just be wary for any surprises I guess.
0600 GMT - UK March retail sales data
0715 GMT - France April flash manufacturing, services, composite PMI
0730 GMT - Germany April flash manufacturing, services, composite PMI
0800 GMT - Eurozone April flash manufacturing, services, composite PMI
0830 GMT - UK April flash manufacturing, services, composite PMI
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.
