The dollar has held firm this week as rising bond yields have rippled through the broader market. Notably, EUR/USD has dipped below 1.0800, with traders pushing above the 100-day moving average of 1.0808. However, the 200-day moving average is closer at 1.0786. This, along with some larger options expiry dates close to this level, could keep price volatility in check, at least for now.
Meanwhile, stocks are continuing to underperform as the month draws to a close. S&P 500 futures are currently down another 0.5%. In commodities, gold has fallen to $2,334, with attention focused on last week's low of $2,325-27.
Looking ahead to the coming sessions, we are not expecting much to disrupt bond market flows or the overall risk mood. There will be some announcements in Europe to move things along, but none of them are likely to have a major impact.
Spain's inflation figures are in the books, but it has been hovering just above 3% for the past few months. The latest figure was estimated at 3.7%, reaffirming that it will be a tough task to bring inflation back up to 2% sustainably in the coming days. But, at least for now, it is unlikely to have any bearing on the ECB's decision next week.
0600 GMT – Swiss trade balance data for April
0700 GMT – Spanish May CPI Flash Report
0700 GMT – Swiss first quarter GDP figures
0900 GMT – Eurozone Consumer Confidence Index for May
0900 GMT – Eurozone economic, industrial and services confidence in May
0900 GMT – Eurozone unemployment rate in April
That's all for the next few sessions. I wish you all the best in the coming days and good luck with your trading. Take care.
