The dollar fell in trading yesterday as the post-Fed digestion continues to play out. Equities ripped higher but so far today, there hasn't been much follow through. USD/JPY is down slightly as the BOJ keeps monetary policy unchanged but dollar pairs in general are holding on to narrow ranges thus far. Meanwhile, S&P 500 futures are down marginally by just 0.1% currently.
It's a question now of how much market players want to push the narrative of a more dovish Fed. We are starting to see the November decision resemble closer to a coin flip now. So, the pricing there will be something to watch out for.
Looking to the session ahead, there won't be much on the agenda to influence that unfortunately.
UK retail sales is on the agenda and expected to show another increase in consumption activity. High price pressures have been weighing on this particular front in the UK for a while now, so we'll have to see if there is some optimism to carry through ahead of the holiday shopping spree in the months ahead.
Besides that, BOJ governor Ueda will be delivering his press conference later at 0630 GMT as well.
0600 GMT - Germany August PPI figures
0600 GMT - UK August retail sales data
0645 GMT - France September business confidence
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.
