Major currencies are little changed for the most part though the yen is once again on the back foot, as the bond market rout continues to be rather unrelenting. That came after more hawkish Fed talk from yesterday, which also spurred on the dollar. Of note, EUR/USD is testing levels back below 1.0900 currently with little in the way of a potential drop towards the March low of 1.0806.
Equities also pulled back yesterday as market odds of a 50 bps rate hike at the next Fed meeting grew, though US futures are more flattish now.
Looking ahead, German factory orders and Eurozone producer prices are the relevant releases but they won't do much to change the plot of the story in the market at the moment. The battle between inflation and central banks is still the main focus and the bond market is where we are seeing that transpire.
0600 GMT - Germany February factory orders
0730 GMT - Germany March construction PMI
0830 GMT - UK March construction PMI
0900 GMT - Eurozone February PPI figures
1100 GMT - US MBA mortgage applications w.e. 1 April
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.
