Who let the hawks out?
That sent yields surging alongside the dollar as we finally see some action in FX after a period of sideways/consolidation for pretty much one month already.
EUR/USD eased back just under 1.2200 while GBP/USD is also testing a push back below 1.4000. Elsewhere, USD/CAD is at a six-week high looking towards 1.2300.
The latter in particular is encouraging after the more upbeat RBNZ language at its last meeting, which may at least suggest that the Fed isn’t the only game in town.
Though when the Fed starts to hint at a move, it is tough to not see the entire market respond accordingly in similar fashion.
Expect those reverberations to continue through to the end of the week with equities still sitting more vulnerable even if yesterday’s decline was contained.
0600 GMT – Switzerland May trade balance data
0730 GMT – SNB June monetary policy decision
0900 GMT – Eurozone April construction output data
A bit of a lagging indicator of economic activity as the market is more focused on the 2H 2021 outlook at this stage. Low-tier data.
0900 GMT – Eurozone May final CPI figures
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.