PMIs once again on the agenda in Europe today

It ended up being a mixed showing by markets in trading yesterday. Bond yields were dragged lower once again but the dollar saw some mixed flows, following the softer JOLTS report here. Meanwhile, Wall Street saw red at the open but clawed its way back to post marginal gains at the close.

So far today, the overall mood is more tepid. Outside of USD/JPY, major FX is not really doing all too much as seen below.

USD/JPY had looked to be inviting a downside break under 155.00, but dip buyers are stepping in for now. Meanwhile, EUR/USD is dealt a setback after a push above 1.0900 on Monday. As the risk mood was a little shaky, USD/CHF tracked lower in a break below 0.9000 and is now contesting key support from its 200-day moving average at 0.8893.

With plenty of focus on US data this week, the bond market will remain one to watch though. 10-year yields in the US are once again at a critical juncture, now testing the confluence of its 100 and 200-day moving averages at 4.33% to 4.35%. It coincides with the May low and a fall below that might trigger more of a reaction in broader markets as well.

Looking to European trading today, we’ll have PMI numbers for the euro area and UK to work through. But these will be the final estimates, so they aren’t going to be of much impact. All eyes instead will be on the US ADP employment change later in the day.

0715 GMT – Spain May services, composite PMI0745 GMT – Italy May services, composite PMI0750 GMT – France May final services, composite PMI0755 GMT – Germany May final services, composite PMI0800 GMT – Eurozone May final services, composite PMI0830 GMT – UK May final services, composite PMI0900 GMT – Eurozone April PPI figures1100 GMT – US MBA mortgage applications w.e. 31 May

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.