It is shaping up to be one of those days in markets. Most times, we go through the pre-NFP lull. But with CPI being the new NFP, here we are stuck in a bit of a lackadaisical mood in the run up to the data release later today.
Major currencies aren’t doing a whole lot so far on the session as the dollar keeps steady for the most part. The changes are light with EUR/USD sticking near unchanged at 0.9700 while USD/JPY is also flat just below 147.00, awaiting a key trigger as buyers test the waters above Japanese authorities’ previous intervention point.
In broader markets, equities are finding a little more comfort now with S&P 500 futures up 13 points, or 0.4%, currently. That is seeing European indices put up a more mixed picture with the DAX also rising by 0.5% while the CAC 40 is flat after opening losses.
But perhaps the most important chart for European markets at the moment is that of 30-year gilt yields. That is seen down to 4.67% in a sign of broad relief after having clipped above the September high at 5.10% yesterday amid the whole BOE fiasco.
For now, this is keeping a sense of calm before we brave through the storm that is the US CPI data at 1230 GMT.