The reliable pattern seems to be back, for now, with a heavy close last week carrying through to early trading in the new week, sucking in some more liquidity to the downside before a harsh reversal.
Today it looks to have been helped by an updated Fed corporate bond purchasing plan and slightly lower new cases % in Florida but it is really just the rhythm the market has been playing all year.
The test will come later in the week as the weekend risk nears again.
There was little other news, however tomorrow there is a flurry of macro data.
It is worth noting the increased volatility and also that, as of yet, Copper looks to be finishing negative despite the risk rebound. Bonds are also relatively unchanged on the day; still signs of potential trouble ahead.
EVER PRESENT FED
0230 : AUD RBA Meeting Minutes & AUD House Price Index
04:00 : JPY BoJ Monetary Policy Statement (tentative)
0700 : GBP Unemployment Rate
0700 : EUR Ger CPI
1000 : EUR Ger ZEW Survey
1330 : USD Retail Sales
1500 : USD Fed's Chair Powell testifies
2000 : CAD BoC's Wilkins speech
2330 : USD Fed's Clarida speech
CAN BONDS HOLD THE LINE?
US Yields attempted to break the other way early June but were quickly hammered down and now sit on the verge of heading lower again.
Potential yield curve control aside, in the current environment an initial break lower would be seen as at least part confirmation that the bond market isn't buying that this risk rally has any further to go.