Markets look likely to start on the defensive in the US today with stock index futures down , the US Dollar finding some support and US bond yields still high at 2.93%. Nothing obvious is causing this weakness but I think the underlying strength of the US economy relative to Europe is causing the move into the USD. The continuation of the trade dispute with China and the belief that China will not back down remains a major negative for the market.
Latest prices are :
Dow Jones 25768 down 0.37% / S&P500 at 2870.45 down 0.26% / Nasdaq 100 at 7426.45 down 0.34%.
EUR 1.1575 down 0.16% / GBP 1.2980 down 0.35% / JPY 111.37 weaker by 0.23%. / DXY 95.26 up 0.15%.
Gold 1188.75 down 0.53% / WTI Crude Oil 67.60 up 0.09%.
US10 2.93% / UK10 1.50% / DE10 0.41%
Analysts are looking for US10 to reach levels of 3.35% in say 12-15 months , so the US Dollar should remain strong relative to others. It is really market positioning that can get overextended.
No economic data due out today in US.