Little on the agenda in Europe to start the new week

The Japanese yen is hogging most of the attention to start the week, following the results of the weekend election. More on that here:

• ForexLive Asia-Pacific FX news wrap: Yen, oil both sharply lower
• Japanese yen in the spotlight after weekend election

However, just be wary that bond yields are still a key focus point for broader markets. And with yields sitting higher again today, that is helping to underpin the dollar as well. And that comes despite US futures looking to be on the up as oil prices sag amid better geopolitical developments here.

10-year Treasury yields are up nearly 4 bps to 4.28%, its highest in three months. And that’s also playing a key role in driving USD/JPY higher to start the week, with the pair up 0.9% to 153.65 currently.

Looking to European trading today, there’s not much on the data front to really shake things up. So, traders will be left in figuring out the factors above and letting that run in the early stages this week.

As a reminder though, the clocks have been set back by an hour in Europe as of the weekend with daylight savings concluding. Just a heads up especially to those unaffected by the change, as to the market timing for the open and data releases.

0900 GMT – SNB total sight deposits w.e. 25 October1100 GMT – UK October CBI retailing reported sales

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.

This article was written by Justin Low at www.forexlive.com.