Economic data coming up in the European session – ForexLive

Eurozone Q4 final GDP report on the agenda

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It is getting harder to talk about risk and equities without talking about the different sectors in the market and yesterday was another example of that, with tech bearing the brunt of the prospects of higher yields.

The rotation into value saw the Dow push forward with solid gains and touched an all-time high, before ending the day up nearly 1% while the Nasdaq slumped by over 2%.

That said, the overall risk mood remains rather nervous with Asian equities marked lower today before turning things around following reported China intervention.

In FX, the dollar continues to thrive across the board as USD/JPY breaks 109.00 and EUR/USD inching closer towards a test of its 200-day moving average although price is keeping a little higher for the time being going into European trading.

The 3-year Treasury auction will be one to watch today but all eyes will be on the 10-year auction tomorrow as the bond market continues to flirt with a further selloff.

It is a tricky period in the market but the broad dollar strength is one trend that is likely to stay the course until we get to the Fed next week. We’re all bond traders now.

0700 GMT – Germany January trade balance data

Prior release can be found here. In the grand scheme of things, trade conditions are still gradually improving back towards pre-virus levels but will take some time.

1000 GMT – Eurozone Q4 final GDP figures

The second estimate can be found here. The final figure should just reaffirm the mild growth slump in Q4, setting the stage for a possible double-dip recession.

1100 GMT – US February NFIB small business optimism index

Prior release can be found here. The anticipation of the stimulus bill should lift small business outlook last month, although softer spending conditions are still a concern that is keeping overall sentiment a fair bit more tepid to start the new year.

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.

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