The dollar is sitting on the brink once again, after it fell following the US CPI data yesterday. While the bond market isn't really indicating too much of a change just yet, dollar technicals are being called into question as highlighted here.
The front end of the curve in Treasury yields did fall, with 2-year yields now back under 4% to 3.98% at the moment while 10-year yields were relatively steady, keeping at 3.41% currently - still above the key threshold of 3.30%. A 25 bps rate hike remains the likeliest option for May but market pricing shows that should be the peak for the year.
Wall Street was optimistic early on but saw a late stumble and that is keeping stocks more cautious today. S&P 500 futures are up 4 points, or 0.1%, at the moment but it is still early days. Meanwhile, European indices will look to build on the slight gains yesterday with the DAX and CAC 40 both hanging at the highs for the year.
Looking ahead, there will be some data releases to move things along in Europe with UK monthly GDP one to watch for the pound. If anything else, keep an eye out on the risk mood and dollar sentiment with there still being US PPI data (today) and retail sales (tomorrow) to work through.
0600 GMT - Germany March final CPI figures
0600 GMT - UK February monthly GDP data
0900 GMT - Eurozone February industrial production
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.
