The buy the dollar, sell everything else sentiment continues to play out as the hawkish Fed remains the only game in town at the moment. As inflation woes, recession worries, and now the bond market implosion all fit into the picture, markets are cowering into the safety of the greenback. The recent major technical breaks on the charts are but a cherry on top of the cake, exacerbating the market moves.

Once again, the dollar is firmer today after reversing early declines yesterday. Equities are staying under pressure with S&P 500 futures down 0.7% while bond yields are a little higher. USD/JPY is one to watch as the pair is nearing 145.00 again and that is prompting a bit of a push and pull amid fears of another BOJ/MOF intervention.

Looking ahead, there won’t be much in Europe to distract from the big picture outlook as traders and investors will continue to focus on broader market sentiment in navigating through the week. For now, there’s still no stopping the dollar as the rampage carries on.

0600 GMT – Germany October GfK consumer sentiment
0645 GMT – France September consumer confidence
0800 GMT – Switzerland September Credit Suisse investor sentiment
1100 GMT – US MBA mortgage applications w.e. 23 September

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.