- A general risk on sentiment in markets this week seeing a bid after a lack of negative news from the French elections, quiet news on the geopolitical front, expectations of Trumps tax plans, and the ECB (press conference on Thursday nights @ 10:30pm) expected to drop its reference to Eurozone downside risks.
- Bulls in control of US Equity markets overnight, with the Nasdaq trading 0.70% higher, closing above 6,000. Dow Jones (1.12%) and S&P500 (0.61%) both consolidating Mondays gap open and moving higher due to solid US company earnings and an anticipation of Trumps Tax Plan.
- Trumps tax plan is scheduled to be released in tonight US session, with headlines already being circulated of a 10% corporate repatriation tax, and a cut to the corporate tax rate of 15%.
- Euro pairs continue to move higher, with EUR/USD trading 6 month highs at 10925. EUR/GBP has consolidated Monday mornings gap open, edging towards the 0.855 level while EUR/JPY approaching a daily downtrend resistance level of 122.00. USD/JPY has traded through the 111.00 level, targeting resistance at 111.65.
- EUR/JPY is likely to rally hard on the back of any talk of tapering, rate hikes or general hawkish commentary at the ECB press conference on Thursday.
- Volatility in AUD/USD expected today during the 11:30am CPI number, the currency has been in a tight range recently, with downside pressures expected in the near term.
Today’s Economic calendar (AEST)
- 11:30am Australian CPI figures
- 10:30pm Canadian Core Retail Sales
- 12:30am Crude Oil Inventories
