The dollar is keeping steadier so far on the day, after posting a decent advance in trading yesterday owing much to a surge higher in USD/JPY. The pair itself got a helping hand from the BOJ and also purported absence of intervention by Tokyo, paving the way for a break above 151.00 to its highest daily close since 1990.
So far today, verbal intervention by Japanese officials is helping to stop the bleeding in the yen. But as has been the case before, it is likely just a temporary relief as they are putting a plaster to stop the dam from leaking.
In other markets, equities ended October with a better showing but US futures are pointing slightly lower today thus far. That being said, S&P 500 futures were down around 0.4% earlier before halving that now ahead of European trading. Meanwhile, the bond market selling is coming back with 10-year Treasury yields moving up to near 4.92% currently.
It’s a brand new month but the same familiar themes are dominating markets once more. The focus today will turn towards the Fed and Treasury refunding but just remember that there is also the BOE tomorrow and US non-farm payrolls on Friday still to come.
0700 GMT – UK October Nationwide house prices
0830 GMT – Switzerland October manufacturing PMI
0930 GMT – UK October final manufacturing PMI
1100 GMT – US MBA mortgage applications w.e. 27 October
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.