Second-tier data on the agenda in Europe today

August 07, 2024 at 06:13AM
The market is in a calmer mood once again today, looking to keep a steadier tone overall. Traders are taking a breather from the Monday rout although the air of optimism did get a bit thin for a while yesterday. But Wall Street finished stronger, despite some selling late into the close. And that’s providing some base for today: Markets stick to recovery mode ahead of European trading

USD/JPY is up over 2% to 147.60 levels now, helped by BOJ deputy governor Uchida’s remarks earlier. He mentioned that the central bank will not hike rates when market conditions are “unstable”. Broader markets are keeping the calm too as such, with S&P 500 futures seen up 0.9% and 10-year Treasury yields up 3 bps to 3.918%.

In FX, the dollar is mixed as it is trading back down against the likes of the aussie and kiwi. Meanwhile, USD/CHF is up 0.9% to 0.8585 as the rebound in the risk mood keeps up for now.

Looking to European trading, there won’t be much on the data front to really trigger any meaningful market reaction. It’s all second-tier data on the agenda. So, market players will have to digest and make sense of the relief over the last two days in figuring out what comes next. Was the panic all overblown? Are we going to see Fed pricing readjust back to before the kicking and screaming?

0600 GMT – Germany June industrial production0600 GMT – Germany June trade balance data0600 GMT – UK July Halifax house prices0645 GMT – France June trade balance data0700 GMT – US MBA mortgage applications w.e. 2 August

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.