A couple of light releases to kick start the new week
The US non-farm payrolls report last week was a solid one and that has helped to keep the dollar elevated and Treasury yields afloat, with the latter in particular going to be a key focus still as we get things going on the week.
10-year yields have moved up to 1.30%, closing in on the 21-26 July highs as well as its 200-day moving average, after establishing a double-bottom at the 20 July low near 1.13%. Push above 1.30% and it will be a break in the recent technical momentum.
That is likely to put further pressure on gold and pull yen pairs higher.
As for the dollar, the stronger jobs report definitely helps to keep the Fed on track for a taper announcement by year-end and even if the delta variant spread brings about a risk aversion push in the market, the greenback can benefit from such flows.
So, that is likely to limit any drop in the dollar, all things considered.
US CPI on Wednesday will be the key risk event this week, so expect the market to keep the focus on Treasuries, risk sentiment, and the technicals for now. Besides that, keep a look out for more Fedspeak ahead of Jackson Hole at the end of the month.
0545 GMT – Switzerland July unemployment rate
0600 GMT – Germany June trade balance data
0800 GMT – SNB total sight deposits w.e. 6 August
Your weekly check of the deposits kept at the SNB by Swiss banks. This data is a proxy for FX interventions.
0830 GMT – Eurozone August Sentix investor confidence
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.