The U.S.-based equity markets are pointing to a higher open this morning. Asian markets closed higher in the overnight session. European markets are mostly higher heading into the afternoon session, with the exception of the FTSE.
Continued weakness in global equities are impacting the United States' pre-market environment. Traders will continue to be mired with updates and rhetoric with respect to the upcoming health care vote and the on going judicial hearing of the Trump nominee.
Global political posturing and currency fluctuations are at the forefront this morning. The recent U.S. dollar volatility, now below the 100 handle, is impacting other currency pairs, such as the euri/U.S. dollar (EUR/USD), GBP/USD and USD/JPY. Traders are seeing additional impact of the most recent FOMC meeting and ECB commentary on Treasuries. The 10-year U.S. yield is maintaining is range bound trade around eh 2.50% handle.
The week ahead will be full of FED speakers, international events and updates, economic reports, and political juxtaposition. Markets participant's will be looking for directional view points as it relates to the overall market technicals, the recent volatility in crude, and the impact of the USD volatility on its global counterparts.
As anticipated, the FOMC raised rates by 0.25% and indicated a continued accommodative stance on Monetary policy. With the Dutch election results in the books, market participants will be looking for key technical levels as global equity strength continues this morning.