Eurozone Q4 final GDP report on the agenda
It is getting harder to talk about risk and equities without talking about the different sectors in the market and yesterday was another example of that, with tech bearing the brunt of the prospects of higher yields.
The rotation into value saw the Dow push forward with solid gains and touched an all-time high, before ending the day up nearly 1% while the Nasdaq slumped by over 2%.
In FX, the dollar continues to thrive across the board as USD/JPY breaks 109.00 and EUR/USD inching closer towards a test of its 200-day moving average although price is keeping a little higher for the time being going into European trading.
The 3-year Treasury auction will be one to watch today but all eyes will be on the 10-year auction tomorrow as the bond market continues to flirt with a further selloff.
It is a tricky period in the market but the broad dollar strength is one trend that is likely to stay the course until we get to the Fed next week. We’re all bond traders now.
0700 GMT – Germany January trade balance data
1000 GMT – Eurozone Q4 final GDP figures
1100 GMT – US February NFIB small business optimism index
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.