There are a couple of interesting themes developing this week across markets and they’re not really in sync. For one, the dollar is breaking out alongside higher yields but at the same time, we are seeing stocks rally courtesy of a breakout in tech.
It’s not your typical risk-on versus risk-off scenario so that makes things a bit tricky amid the lack of serious conviction in markets earlier this week. But at least with the dollar move now, we are getting some decent opportunities to work with.
Elsewhere, gold has also broken down to fresh lows since the start of April and a deeper pullback there may present a good spot for dip buyers to step back in.
Looking ahead today though, all eyes will be on Fed chair Powell’s speech on monetary policy to see if he has anything to add to the hawkish headlines from yesterday.
0600 GMT – Germany April PPI figures
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.