Markets are modestly firmer ahead of key US data releases, with European bourses and US equity futures gaining ground. The US dollar, however, is taking a breather as it awaits a deluge of economic data today. Meanwhile, Antipodeans lag and the Japanese yen digests the potential reduction of tariffs between the US and Japan.

In fixed income markets, European government bonds (EGBs) and Gilts are rebounding, while US Treasuries remain flat as investors gear up for a busy data week. The Spanish auction was well received, while there was some short-lived pressure on the French auction.

In commodity markets, oil prices have pulled back ahead of this weekend’s OPEC meeting, with some upside seen in the complex after Russian Deputy PM Novak indicated that OPEC-8 are not discussing production increases at present. Looking ahead, key data releases include the US ISM Services PMI (Aug), ADP National Employment (Aug), Challenger Layoffs (Aug), Jobless Claims, Atlanta Fed GDP, Canadian Trade Balance (Jul), BoE DMP, and a Senate Banking Committee hearing for US President Trump’s Fed nominee Stephen Miran, featuring speakers including Fed’s Williams and RBA’s Hauser.

In other news, the UK’s Bank of England is set to release its latest DMP (Distributed Microservices Platform) today, which could provide insight into the bank’s thinking on future monetary policy moves. Additionally, the Senate Banking Committee will hold a hearing for Trump’s Fed nominee Stephen Miran, which could shed light on his views on the role of the Federal Reserve and the US economy.

Overall, markets are expected to remain volatile ahead of these key data releases and events, with investors keeping a close eye on developments in the global economy and monetary policy landscape.