ECB highlights the calendar in European trading today

<p>And so the shackles are finally coming off for USD/JPY and that is likely to help underpin the dollar further this week. The surge higher in Treasury yields yesterday was another tailwind for the greenback, with 10-year yields now at 4.968% on the day and inching closer towards the 5% mark once more.</p><p>Meanwhile, higher yields are not only weighing on equities but the poor showing by tech shares on earnings week is another downer for stocks at the moment. The Nasdaq was the main drag yesterday, falling by 2.4%, and we are seeing that carry over to today also. S&amp;P 500 futures are down 0.7% with Nasdaq futures down 1.1% currently – not helped by disappointing receptions to the Meta and Alphabet earnings.</p><p>While all that is going on, gold continues to shine brightly as it runs up towards a test of daily resistance at $1,983-87 again. Despite easing tensions in the Middle East and rising bond yields, gold is staying the highs for the time being as buyers are looking like they might want a run at $2,000 before all is said and done.</p><p>Looking to the session ahead, the euro will be a focus point with the ECB policy decision coming up. However, it is likely to be a dud as the central bank has already clearly communicated a pause for now. So, expect the language to reflect that while keeping the door open for maybe doing more if needed. Instead, they are likely to push the emphasis on the higher rates for longer narrative more today.</p><p>1000 GMT – UK October CBI retailing reported sales1215 GMT – ECB October monetary policy decision1245 GMT – ECB president Lagarde press conference</p><p>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.</p>

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