Today’s major headlines:

  • Treasury yields continue to drift lower following recent dovish Fed speak
  • Equities maintain short-term bullish composure with all eyes on incoming US data
  • DXY trades below key short-term trend support with the balance of risks skewed lower

Key takeaways:

  • US equities have maintained their short-term bullish composure as yields continue to drop lower.
  • The DXY has also broken below key short-term trend support, with a classic breakout-retest-continuation pattern.
  • The key driver for the USD right now is yields as well as the incoming data. However, even if the data comes in hot, the balance of risk seems titled lower in the short-term.

Overall, the market is in a bit of a wait-and-see mode ahead of tomorrow’s PPI data. If you’re looking to trade today, be careful and keep an eye on the data release.

In addition to the above, here are some other things to keep in mind:

  • The US midterm elections are coming up in November, which could add some volatility to the markets.
  • The war in Ukraine is still ongoing, and there is always the risk of escalation.
  • The global economy is slowing down, which could lead to lower corporate earnings and a decline in stock prices.

It is important to trade carefully and to have a risk management plan in place.

This material is for general information purposes only and is not intended as (and should not be considered to be) financial, investment or other advice on which reliance should be placed. INFINOX is not authorised to provide investment advice. No opinion given in the material constitutes a recommendation by INFINOX or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person.

All trading carries risk.