An uneventful overnight session sees most assets trading in a tight range.
Traders still reluctant to put on meaningful positions ahead of event risk.
Ahead of the US open we’ll see Preliminary US GDP expected 2.15 & US Consumer Confidence (Conference Board) expected 111.1.
This evening brings Australian GDP expected 0.7%.
However, the big event today will be US President Donald Trump addressing a joint session of congress where he is expected to outline details of his administrations budget, hopefully offering insight into the timing and nature of infrastructure spending, tax reform, and other important proposals.
Much of the recent move higher in risk assets has been based on the assumption that the new Trump administration will deliver comprehensive pro-business reforms. As mentioned yesterday, market participants have high hopes for this speech and a failure on the part of the administration to meet expectations could see risk assets take a hit. Alternatively, should the administration meet or exceed expectations, it could be the catalyst to drive prices for risk assets another leg higher.
Also of note, dealers suggest there is a strong dollar sell signal for month–end fixes today, which could lead to some FX volatility.
We’ll keep you posted as the day evolves…