The bond market is still the key spot to watch this week, with 10-year Treasury yields sensing a potential break lower after a slew of poor US data during the week. For now, it seems like traders are still somewhat tentative with the key risk event this week i.e. US non-farm payrolls still to come tomorrow.
We're moving towards a debate in the economic outlook between a soft landing and a hard landing again, and that sets up a risk-on vs risk-off state of play in markets. The dollar remains somewhat sluggish as it has to balance all of that out, but it is hanging on for the time being at key levels.
EUR/USD is holding below the important 1.1000 level to track back below 1.0900 now while GBP/USD is retreating from 1.2500 towards the broken resistance region around 1.2443-46 currently. The antipodeans are struggling somewhat today amid softer risk appetite, with US futures pointing lower as well ahead of European trading.
There won't be much to distract from the market mood in Europe, with only several light economic releases on the agenda.
0545 GMT - Switzerland March unemployment rate
0600 GMT - Germany February industrial output
0600 GMT - UK March Halifax house prices
0730 GMT - Germany March construction PMI
0830 GMT - UK March construction PMI
1130 GMT - US March Challenger job cuts, layoffs
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.
