Just when you thought that there might be room for a bit of a breather, the bond market starts to run again. The jitters are still persisting and this sort of choppy environment looks set to continue for a while more. The dollar is steadier today after dropping off yesterday amid more dovish Fed expectations, but all eyes will stay on bonds again in the session ahead.
Oh, and in case you’ve forgotten, we also still have the US CPI data coming up. ✌️
That Credit Suisse headline shows how fragile and fearful sentiment currently is, so let’s see if the worries will continue to grow for European banks in the morning trade later. As for FX, it seems like the focus will stay on the inflation numbers as major currencies are still caught in their own worlds at the moment.
Looking elsewhere, gold remains one to pay attention to as it keeps above $1,900 after yesterday’s break higher. Meanwhile, oil caught a bounce from its January and February lows around the $72.30-50 region and that alongside the $70 mark will be key support levels to eye in the sessions ahead if the downside pressure persists.
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