Earnings season hype is keeping the Dow jones index well bid and expect to grind higher while finding lots of demand on any further dips as investors want to dock on expectations that core banking regulations are to ease and with it profits soar.
Wage growth for gbp is due today an important indicator for monetary policy guidance. Yesterday’s cpi beat expectations and undoubtedly gbp popped major resistances especially against Aud as expected since last week. If wage growth comes higher gbp bulls will take the currency to the skies.
Risk aversion is somewhat easing off partially because market is focusing on earnings. Moreover Chinese president Xi is calling for Trump to ease off provocations and let diplomacy settle the North Korean issue.
Notable events today:
NATO head honcho to meet Trump in Washington today.
BOC rate decision
Will keep a close eye on developments. Lastly about Aussie there is a lot of pressure building if data declines there won’t be much support from dip buyers.