It’s tough to read into the market moves at the moment as traders and investors are all lacking any firm conviction before we get to Fed chair Powell’s speech at Jackson Hole tomorrow. The dollar was higher yesterday but is swinging back lower today with EUR/USD now approaching parity again, up 0.4% on the day.
Risk tones are also faring better after a bit more of a depressing start to the week. Wall Street pushed higher yesterday and we are seeing US futures higher today as well with S&P 500 futures up 0.4% on the day now. Still, the cash index is hovering in between its 100 and 200-day moving averages at 4,082 and 4,312 respectively and those are the two key technical levels to watch at the moment.
Looking ahead, we could see some extension to the moves so far today but in the context of trading this week, they won’t offer too much in terms of firm direction until we get through the main event tomorrow.