We saw a steady day across the global markets yesterday with the dollar continuing on it’s march higher against the majors, this move came in line with the US 10Yr Bond yields moving higher to nearly reach the key psychological level at 3%. The equity markets had a mixed day despite a strong earnings report from Alphabet with the US indices finishing the day close to flat.
A calm seems to have come across global markets in the last few days trading after what had been a torrid few weeks with geo-political issues driving markets first one way and then the other. Investors are now watching closely to see if we are in the eye of the recent storm of volatility of if we do have calm sea’s ahead leading to stronger global growth. Only time will tell but certainly the market is keeping a close eye on the news wires and screens for anything that may lead to a return to volatility and downside risk.
Looking ahead to today’s trading and we have some key data out here in Australia with the release of the quarterly CPI data, market expectations sit at 0.5% QoQ and 1.9% YoY. It’s quiet for the rest of the Asian session but market focus will turn to the latest German IFO numbers as we enter the London session. Into the New York Open and traders will be closely monitoring the US CB Consumer Confidence number, with expectation at 126.00, a higher number should see a continuation of the recent trend and the dollar push further to the topside.