Talking Points:
• The S&P 500 finally found a breather after its worst start to a trading year since 1991
• A correction in risk trends was a high probability, but what is the dominant trend moving forward?
• Meanwhile, data on the Euro side further weighed the currency while US data bolsters the USD
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After a five-day tumble, the S&P 500 finally gathered itself for a gain. Fear of a full collapse in risk trends and capital markets has been curbed. That said, averting a panic doesn't mean the markets are looking to return to the status quo reach for yield that defined the preceeding years. Speculators watch nervously for any tremors in the system as they gauge correction versus reversal for US equities, Yen crosses and even EURUSD. Our next move on many of these benchmarks hinges on this assessment. In the meantime, data is queuing up volatility for certain currencies. This past session, the FOMC rate decision shaped the outlook for rate speculation and a dense round of Euro-area data reinforced the probability of stimulus. Ahead, the docket provides a few notable distractions from the sentiment ebb-and-flow including Friday's NFPs. We take a look at the trading environment in today's Trading Video.
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