There was a push and pull in trading yesterday, with stocks rallying amid Fed chair Powell's comments before reversing course to end the day lower. That still points to rougher pastures at the moment for equities and futures are pointing a touch lower as we look towards European trading.
But the yen is the big mover on the day amid a retreat in USD/JPY from 136.00 to 135.15 before keeping around 135.40-50 levels at the moment. As much as an upside breakout still looks to be the likely path, the risks of intervention is rising ahead of 140.00 and that is presenting some added cautious tones.
Elsewhere, the dollar is steady after a bit of a drop yesterday against the euro and pound although it did keep a decent advance against the commodity currencies. The aussie is the laggard again today with AUD/USD down 0.5% to 0.6890 amid the dwindling risk appetite.
Looking ahead, euro area PMI data will offer something to chew on in the session ahead. We'll see how resilient the economy is in the wake of more persistent inflation and if recession worries by year-end are becoming more justified.
0645 GMT - France June business confidence0715 GMT - France June flash manufacturing, services, composite PMI0730 GMT - Germany June flash manufacturing, services, composite PMI0800 GMT - Eurozone June flash manufacturing, services, composite PMI0830 GMT - UK June flash manufacturing, services, composite PMI1000 GMT - UK June 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.
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