Major US equity indices headed higher yesterday, Nasdaq and S&P500 got supported from the tech sector ahead of quaterly results expected from some of the big players although the DJ remained in negative territory. Asian markets took the positive cue this morning.
Sentiment in favour of equities got a leg-up in China as the state council said it would engage in more fiscal policy on Monday. In the meantime the Chines Yuan continued to decline as well.
The USD managed to stand tall, and from earlier lows on Monday we’re seeing the buck marking some positive territory as it gets a lift off. In the background, from one side rises in US treasury yields lent support to the USD while from the other hand reported Yen buying by Japanese exporters pressured the USD lower.
The US Dollar index, measuring the strength of the USD against a basket of currencies is currently at 94.71, shrugging off Monday’s lows of 94.21.
Meanwhile this morning the currency heat map shows the USD making gains against all its major counterparts except the JPY. Even the JPY is one of today’s gainers. The euro is making the bulk of its losses from against the USD and the JPY this morning but is also losing against most of the major counterparts.
On the economic docket we look on to EZ and the US Manufacturing PMIs, and from the US we also have the Richmond Fed Manufacturing Index later today.
