October 23, 2024 at 06:42AM
The Japanese yen is the main mover as we look towards European trading, with key technical resistance levels starting to give way for yen pairs in general. That is keeping things interesting in an otherwise lackluster last two European morning sessions. From earlier: Yen pairs keeping things interesting on the week
Major currencies are lightly changed in general outside of the yen. And that comes as equities sentiment is seen rocking more back and forth during the week.
The bond market is also helping to keep some interest in broader markets, with yields continuing to hold higher. Similar to USD/JPY, 10-year Treasury yields are also taking a peek above its own 200-day moving average on the week. Yields are now seen at 4.235%, its highest since mid-July.
Looking to the session ahead, traders will be left to their own devices once again. There isn’t anything major in Europe, so expect there to be minimal headlines in general.
All eyes today will be on the Bank of Canada policy decision, with the central bank expected to cut rates by 50 bps to 3.75%. In terms of market pricing, the OIS market is showing ~85% odds of that with the remainder pinned to a 25 bps rate cut.
1100 GMT – US MBA mortgage applications w.e. 18 October
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.
This article was written by Justin Low at www.forexlive.com.
