Little on the agenda in Europe to kick start the new week

Major currencies are more muted in general to start the day, with only the yen sitting slightly higher. USD/JPY is down 0.2% to 149.23 as the pair starts to show some signs of exhaustion after testing waters above 150.00 last week. Price action is now sitting under both the 100-hour and 200-hour moving averages at 149.57 and 149.30 respectively, as sellers look to make a play. There is some minor support around 148.85-00, so that will be one to watch before any downside extensions.

Besides that, the dollar continues to keep steadier but not really extending the gains from earlier this month. Even AUD/USD is trading back above its 100-day moving average of 0.6695, reaffirming a slight retracement.

Looking to equities, US futures are more muted after the gains on Friday. Stocks in general remain buoyed as major central banks are cutting rates into a soft landing scenario, in particular for the US economy.

Coming up in the session ahead, there won’t be much on the agenda to shake up these narratives. Markets will have to look to the BOC later this week and PMI data for more clues. In the meantime, we might just see some pushing and pulling in the days ahead.

0600 GMT – Germany September PPI figures0800 GMT – SNB total sight deposits w.e. 18 October

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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