We’re seeing a continuation of yesterday’s late session bounce in US equities in today’s futures market price action, with all four broader equity indices ($ES, $YM, $NQ, $RTY) trading slightly in positive territory ahead of the Wall Street Open.
Most of the European Global Services PMI data released overnight reported a contraction in services sector activity, but beat analyst’s expectations, which is contributing to some of the positive risk sentiment for the session.
This is also being confirmed by the softer US Dollar ($USD) and Japanese Yen ($JPY) as traders rotate out of safety into instruments that are high beta or higher-yielding. Oil is still weak, but is currently bouncing off its lows. Dr. Copper ($HG) is trading below its session high for the day, which could be indicative of a slow down in industrial/manufacturing activity.
At the moment, economists are waiting for the release of the 🇺🇸 US ISM Manufacturing PMI data for December and the recent 🇺🇸 FOMC Meeting Minutes from the Fed’s policy meeting in December.
Marvin Perry has been an active trader within the Forex market since 2010. He attended the University of Illinois in Urbana/Champaign, and graduated in 2002 with a double major in Cell and Structural Biology and Chemistry. He currently serves as an FX instructor & Quantitative Analyst for the Forex Anatomy Private Trading Community called "The Lab", where he conducts live weekly trading webinars & instruction on Fundamental Analysis & Inter-Market Interpretations of dynamic asset classes and their influence on currencies.