Year Yield Differential News Today

A rather hawkish ECB statement probably sits somewhere between the BoE and the Dovish Fed, keeping the euro supported. What is likely to drive euro pairs next week?

The global capital markets were showing an unusual amount of volatility before an extended holiday weekend (in the US), but the technical picture was less than convincing

The technical structure behind EURUSD the past four months has put the power back into the bulls’ control, but the strong reversal just of the past four days may change our course

The Bank of Japan was once the most innocuous of the major central banks for policy focus, but implied volatility suggests the markets are hyper attentive for today meetin

There was a lot of talk around a ‘pivot’ through the end of 2022. Much of that reference was made in regards to the forecast for the Fed and the broader developed world monetary policy environment.

Today’s trade has been a marked downshift in activity - and certainly direction - but the technical support in the vicinity likely has less to do with the shift than broader liquidity conditions

Event risk ahead is dense and may overlap in terms of market-moving potential, particularly between Tuesday’s CPI and Wednesday’s FOMC decision

The VIX volatility index finally broke free of its persistent, two-month bear trend channel; but that doesn’t directly translate to a full breakdown from the S&P 500

There is debate as to whether the BOC will hike 25 or 50 bps from its current 3.75 percent rate, but Loonie traders will likely draw on the comments and cross counterparts

While there is plenty of key event risk over the coming weeks – and before the true year-end liquidity drain – this week’s price action may suffer for anticipation of the following week’s Fed and ECB decisions