<p>Headlines:</p><ul><li><a target=“_blank“ href=“https://www.forexlive.com/news/still-no-spark-yet-for-treasuries-this-week-20220818/“>Still no spark yet for Treasuries this week</a></li><li><a target=“_blank“ href=“https://www.forexlive.com/news/dollar-gains-ease-up-amid-some-pushing-and-pulling-20220818/“>Dollar gains ease up amid some pushing and pulling</a></li><li><a target=“_blank“ href=“https://www.forexlive.com/news/eurozone-july-final-cpi-89-vs-89-yy-prelim-20220818/“>Eurozone July final CPI +8.9% vs +8.9% y/y prelim</a></li><li><a target=“_blank“ href=“https://www.forexlive.com/news/germany-plans-to-lower-sales-tax-on-gas-to-7-20220818/“>Germany plans to lower sales tax on gas to 7%</a></li><li><a target=“_blank“ href=“https://www.forexlive.com/centralbank/ecbs-schnabel-the-outlook-for-the-ecb-has-not-changed-20220818/“>ECB’s Schnabel: The outlook for the ECB has not changed</a></li><li><a target=“_blank“ href=“https://www.forexlive.com/centralbank/boe-to-aim-for-unwinding-full-stock-of-bond-purchases-at-the-end-of-2023-or-early-2024-20220818/“>BOE to aim for unwinding full stock of bond purchases at the end of 2023 or early 2024</a></li></ul><p>Markets:</p><ul><li>AUD leads, EUR lags on the day</li><li>European equities higher; S&P 500 futures up 0.2%</li><li>US 10-year yields down 3 bps to 2.865%</li><li>Gold up 0.6% to $1,770.83</li><li>WTI crude up 1.2% to $89.20</li></ul><p style=““ class=“text-align-justify“>It was a quiet session that featured some indecisiveness among traders and investors, after having failed to gather any real conviction following the US retail sales and FOMC meeting minutes from yesterday.</p><p style=““ class=“text-align-justify“>The dollar firmed slightly early on while equities were a touch more defensive but now we’re seeing things run back the other way ahead of North America trading instead.</p><p style=““ class=“text-align-justify“>There weren’t any majro catalysts for the moves as broader markets are still finding it tough to settle on a firm narrative, with Treasuries also not really signaling at a change in the outlook over the past two weeks.</p><p style=““ class=“text-align-justify“>EUR/USD fell from 1.0170 to 1.0147 but remains caught in a host of large expiries around current spot levels today. GBP/USD took a bit of a drop from 1.2050 to 1.1995 before moving back up to 1.2050-60 levels now. Meanwhile, USD/JPY slipped from 135.40 to 134.80 after the attempt to keep above 135.00 looks to be exhausted amid a lack of poise in bond yields.</p><p style=““ class=“text-align-justify“>The aussie and kiwi also saw notable turnarounds against the dollar with AUD/USD dropping from 0.6940 to 0.6900 before climbing back up to 0.6970. That said, price is still keeping below 0.7000 and that is keeping sellers in control for the most part.</p><p style=““ class=“text-align-justify“>The switch came as equities turned a more sluggish session into one which is lightly more positive but even as US futures are pointing higher, the retreat yesterday is a note of caution with the S&P 500 having backed away from a test of its 200-day moving average. That will be a key level to watch in case dip buyers do try and step in towards the end of the week.</p>

This article was written by Justin Low at www.forexlive.com.

<p style=““ class=“text-align-justify“>The push and pull feel in broader markets pretty much is the story so far today, as traders and investors lack any real conviction after not getting any sparks from the US retail sales and FOMC meeting minutes yesterday.</p><p style=““ class=“text-align-justify“>European stocks were little changed early on before slipping a little but are now trading higher as US futures also climb a little. The DAX is up 0.9% and the news from Germany <a target=“_blank“ href=“https://www.forexlive.com/news/germany-plans-to-lower-sales-tax-on-gas-to-7-20220818/“ target=“_blank“>here</a> is very much welcome for consumers. Elsewhere, the Eurostoxx is up 0.4% and CAC 40 up 0.5% on the day currently.</p><p style=““ class=“text-align-justify“>This comes as US futures also tick a little higher, with S&P 500 futures up 6 points now, or 0.15%, after having been down by 18 points earlier in the session. This is keeping major currencies on their toes as well with AUD/USD recovering from 0.6900 to 0.6950 and GBP/USD paring a decline from 1.1995 to 1.2055 at the moment as the dollar gives some back.</p><p style=““ class=“text-align-justify“>But looking ahead, Wall Street will have a challenge up their sleeves with the 200-day moving average a key focus for the S&P 500:</p>

This article was written by Justin Low at www.forexlive.com.

<p style=““ class=“text-align-justify“>This is being announced by German chancellor, Olaf Scholz, as the government is trying to reduce the burden for consumers. For some context, the tax otherwise would be 19% and the government is hoping that companies will pass on the VAT cut in full to consumers as such.</p><p style=““ class=“text-align-justify“>The move above comes after Brussels rejected Germany’s request for an exemption on its new gas price levy – which was proposed as a measure by the German government in order to help Uniper and other gas importers cope with soaring prices due to reduced Russian export flows.</p>

This article was written by Justin Low at www.forexlive.com.