A couple of interesting things which may affect trading and pick up some volatility are the Jerome Powell confirmation hearing before the Senate Banking Committee on Tuesday and Janet Yellen’s last appearance before the Joint Economic Committee on Wednesday. On Thursday inflation data will be released around the world beginning in Asia with the Chinese PMI and then European and U.S. reports follow with core U.S. PCE expected to rise a little to 1.4 % but remain significantly below 2 % target. Market will need a catalyst move push out of either side of this tight outright yield range it’s been trapped in. Of course there has been a trending play as a strong flattening tendency for the yield curve is likely to continue. These spreads hit a very slight hiccup before the holiday as everyone seems to talking about whether or not market will eventually invert. Some definite tax reform news at end of the week could get markets to pick up and we’ll likely have to wait for that news. In other markets the dollar is continuing the slide from last week and stocks are unchanged to marginally higher. Gold has bounced with the Euro after ignoring the dollar on a holiday shortened trading session last Friday . Overall Gold market seems as stuck in a range as the ten-year note is in the 2.32 to 2.39 area. Please give me a ring for some trading ideas.
