The dollar is sitting in a good spot as we look towards European trading, holding steady after the gains yesterday. USD/JPY in particular is looking buoyed, holding near 115.80 on a technical breakout as seen here.
Elsewhere, US futures are pointing to a slight advance while Treasury yields are steady after a surge higher overnight. 10-year yields are little changed, hovering around 1.63% currently.
Market players are still trying to establish a coherent theme but for now, it looks like we're seeing the flows adjusting as the new year gets underway. Looking ahead, there will be some light releases to move things along in Europe. However, they should pretty much just reaffirm the overall landscape for the time being.
0700 GMT - Germany November retail sales
German retail sales is expected to keep slightly more subdued going into year-end, estimated to drop by 0.5% on the month. Amid virus risks and surging inflation pressures, that may dampen consumer activity for a while longer.
0730 GMT - Switzerland December CPI figures
Swiss annual inflation is expected to keep thereabouts in December, reaffirming the gradual rise over the past few months. However, core inflation remains subdued and that will keep the SNB on the sidelines still.
0745 GMT - France December preliminary CPI figures
French inflation is estimated to keep on the high side last month, reaffirming that perhaps price pressures are not quite abating just yet. That will keep the pressure on the ECB to start the new year.
0855 GMT - Germany December unemployment change, rate
German labour market conditions have been steadily improving over the months and despite the threat of omicron, the trend should still be sustained in December.
0930 GMT - UK December final manufacturing PMI
The manufacturing sector is seen holding up last month and the final reading today should reaffirm that. However, with virus cases surging amid omicron, that will likely keep a lid on any optimism for now.
0930 GMT - UK November mortgage approvals, credit data
Prior release can be found here. Mortgage approvals are estimated to moderate further while consumer credit growth is expected to keep on the softer side, reaffirming that the economy is still far off from firing on all cylinders.
Besides that, keep in mind that OPEC+ will be announcing its latest decision on output policy today.
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.
