As we turn our focus to European trading, the Japanese yen is making waves in the market. Key technical resistance levels are starting to break for yen pairs, adding some excitement to what has been a quiet couple of European morning sessions. While the yen is grabbing attention, major currencies other than the yen are relatively stable. This stability comes amid fluctuating sentiments in the equities market throughout the week.
The bond market is also contributing to the market dynamics, as yields remain elevated. Similar to the USD/JPY pair, 10-year Treasury yields are flirting with their 200-day moving average, currently sitting at 4.235%, the highest level since mid-July. This movement in yields is keeping investors on their toes and adding some intrigue to the broader market.
Looking ahead to the upcoming trading session, it appears that traders will have to rely on their own judgment once again. There are no significant events or news expected out of Europe, so we may see minimal headlines today. However, all eyes will be on the Bank of Canada’s policy decision, with expectations of a 50 bps rate cut to 3.75%. Market indicators suggest an 85% probability of this rate cut, with the remaining 15% anticipating a smaller 25 bps cut.
In terms of data releases, at 1100 GMT, the US MBA mortgage applications for the week ending 18th October will be in focus. This data could provide insights into the health of the housing market and consumer sentiment, influencing trading activity.
As we navigate through the day’s trading session, I wish all traders good luck and success in their endeavors. Remember to stay informed and make wise decisions in your trading activities. Stay safe and have a great day ahead!
