Major currencies are mostly little changed but the dollar is steadier as the focus and attention turns towards the US non-farm payrolls data later today. Equities are slightly lower after the rally yesterday, after Apple earnings missed and that is weighing on tech sentiment mostly. S&P 500 futures are down 0.6% while Nasdaq futures are down 1.6% currently. Dow futures are flat though, so at least there is that.
While the jobs report later in the day will be the key risk event, broader markets are still largely digesting the central bank bonanza this week for the most part. If there is a quick takeaway, it is that major central banks are slowly coming around to the idea that inflation is softening and they are opening the door for a policy pivot down the road.
The next major hurdle with regards to that will be the US CPI data on Valentine's Day. Considering that we are moving towards a more data-reliant phase, a softer reading there will be a massive boon for risk trades to keep the momentum going this month.
Looking ahead, PMI data will be on the agenda in Europe but these are final readings so they shouldn't be too impactful.
0815 GMT - Spain January services PMI
0845 GMT - Italy January services, composite PMI
0850 GMT - France January final services, composite PMI
0855 GMT - Germany January final services, composite PMI
0900 GMT - Eurozone January final services, composite PMI
0930 GMT - UK January final services, composite PMI
1000 GMT - Eurozone December PPI 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.
