GBP/USD did nudge a little higher to 1.2670 after the UK PMI data
here earlier. But the pair is now back down to 1.2645, up just 0.2% on the day. Elsewhere, USD/CHF is down 0.2% to 0.8910 but the euro, yen, loonie, and aussie are all flat against the dollar currently. Even after the French and German PMI data, the euro isn't doing all too much:
As mentioned earlier
here, the ECB rate move in January is largely priced in already and there wasn't much to move the needle from the PMI data releases today. Adding to that, the key near-term levels seen above and large option expiries are continuing to anchor the pair closer to 1.0500 for the time being.
Besides that, there isn't much for major currencies to work with as we get the new week underway.
European indices are lower after a more sluggish showing last week, with US indices also having been kept in check. That said, US futures are higher today but again we'll have to take stock of the mood again later when Wall Street enters the fray. It's always a different ball game when US markets open and with eyes on the PMI data later.
In the bond market, 10-year Treasury yields are down slightly by 2 bps to 4.38% but this doesn't do much to take away from the run higher in yields last week. 10-year yields moved up from 4.15% to end the week at 4.40%. So, yeah.
The main events this week are the key central bank meetings featuring the Fed, BOJ, and BOE. As such, we're caught in a bit of a waiting game in starting off the final real trading week of the year.
This article was written by Justin Low at
www.forexlive.com.
