Perhaps. The narrow ranges across major currencies so far today hint at a more unenthusiastic attitude among traders at least. EUR/USD is stuck within a 20 pips range and GBP/USD within a 30 pips range as we look towards European trading. The yen though will continue to pique the market’s interest after the BOJ surprise yesterday.
USD/JPY plunged lower to meet daily support from the 16 June low at 131.49 before finding a bit of a bounce now. That said, even with price up just above 132.00 today, it isn’t indicative of much of a turnaround in sentiment and momentum.
Meanwhile, 10-year JGB yields are still holding higher at around 0.47% with 10-year Treasury yields also lifted by 2 bps to 3.708% currently.
Elsewhere, equities are finding some light relief after the heavy selloff since Wednesday last week with S&P 500 futures seen up 16 points, or 0.4%, at the moment. The cash market managed to fend off another drop yesterday, with buyers putting up a defense at the 50.0 Fib retracement level of the recent upswing:
That is the next key line in the sand for stocks, at least from a technical perspective, when navigating through the next few sessions.