Little on the agenda in the session ahead
Major currencies are quieter for the most part, although AUD/NZD is keeping lower ahead of the RBA and that is seeing the kiwi hold a slight advance across the board.
The pair is down a little over 0.2% to 1.0530 with there being growing expectations for the RBA to announce a delay to its tapering call previously by mid-September.
Elsewhere, the overall risk mood is still holding up after a slight retreat yesterday amid delta variant fears. US futures are sitting a little higher on the day so far but keep an eye on the bond market as that could signal more fear in the sessions ahead.
10-year yields were dragged down to 1.17% and the post-Fed trend reaffirms the series of lower highs, lower lows in yields since May – at least for the time being.
The July low @ 1.129% will be key in further confirming the trend movement next.
That may yet set the stage for this week’s non-farm payrolls to be a make or break moment for the bond market and yields, considering the Fed’s strong emphasis on labour market conditions in gauging “substantial further progress”.
1000 GMT – Eurozone June PPI 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.