US futures pull higher as the optimism holds

The broader market sentiment is continuing to recover, with the optimism from yesterday holding up for now. S&P 500 futures are up 1.1% while Nasdaq futures are up 1.4% currently. In the bond market, 10-year yields in the US are up 5 bps to 3.937% at the moment. And in FX, USD/JPY is back up to 147.30-40 levels after having dipped to a low of 146.08 at the start of European morning trade.

It bodes well for the recovery mood if markets can keep this all up. But just be wary that we could get another potential trigger from the US weekly jobs claims tomorrow. Traders might be less fearful now that they have allowed for some deleveraging but you can’t be too careful to rule out another reaction to a softer reading in labour market data again.

This article was written by Justin Low at www.forexlive.com.