Market sentiment is encouraging into the open. Earnings, China’s PMI and Europe’s PMI have all helped to shift sentiment into a more positive light. Accordingly, futures are pointing to a positive open, the U.S. 10year is at 2.24% and the USD is mixed. Today there is a slew of data with markets eagerly turning their attention towardsnext week’s Fed meeting. Yesterday’s inflation print has kept the expectations for the first Fed hike stable at October, however we think this underprices the risk of an earlier rate hike.
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