Markets continue to reflect confidence, with equities bouncing around record highs, while bond yields drift lower. There remains a dearth of US economic data, due to the Government lockdown, that is now extending to the second longest in history. China/US trade has been looking more positive, with an agreement likely at the AIPEC Meeting. Markets will be looking closely at PMI data from across Asia, Europe and the USA. US inflation data is also scheduled for release, which is expected to spike upwards, although bond yields suggest no dramatic impact. The US Dollar remains steady, with the EUR holding 1.1600, while the GBP falls back to 1.3300.
Commodity currencies regained some lost ground, with the AUD regaining 0.6500, while the NZD looks to break above 0.5750. Japanese inflation data will be watched closely on today’s markets, while PMI data may have a directional influence.
