GBP/USD pushed slightly 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 right now. Even after the French and German PMI data, the euro is not doing too much:
EUR/USD hourly chart
As mentioned earlier hereJanuary's ECB rate move is largely already priced in and there was little to move the needle from today's PMI data releases. Additionally, the key near-term levels seen above and large options expirations continue to tie the pair closer to 1.0500 at this time.
Besides, there isn't much for big bucks to work with as we start the new week.
European indices are lower after a slower showing last week, with US indices also held in check. That said, US futures are higher today but again we will have to check the sentiment again later when Wall Street enters the wild. It's always a different ball game when the US markets open and with eyes on PMI data later.
In the bond market, the 10-year Treasury yield is down slightly by 2 bps to 4.38% but this does little to detract from last week's higher run in yields. The 10-year yield moved up from 4.15% to end the week at 4.40%. So, yes.
This week's main events are central bank meetings involving the Fed, BOJ, and BOE. So, we're caught in a bit of a waiting game as we begin the last real trading week of the year.
