Volatility remains low on Tuesday
09 November 2021
EU and US stock markets were trading flat during the London session today, while the greenback declined against most of its major peers.
The US 10-year yield fell again and erased yesterday's gains as it looks like the 200-day moving average at 1.46% will not be held, likely leading to a significant drop in US yields.
At the same time, the Fed funds futures have pushed back the likely date for rates lift-off from around July next year to September or October.
Later in the day, German ZEW surveys are due, expected to decline in November, possibly undermining the EURUSD pair.
Additionally, ECB President Christine Lagarde is due to deliver opening remarks at the ECB Forum on Banking Supervision. However, since the topic of her speech is not monetary policy, her comments will likely be ignored by market participants.
Investors will then switch attention to the US PPI indices. According to this measure, inflation is expected to rise further to 8.7% year on year. However, the core indicator is seen stalling at 6.8%.
Lastly, the Fed's Powell, the BoE's Bailey, and the BoC's Macklem will speak at an online conference on diversity and inclusion in economics and central banking, jointly hosted by the Federal Reserve Board, Bank of Canada, Bank of England, and European Central Bank.