Market repositioning ahead of key US data - Rabobank

Michael Every, Head of Financial Markets Research at Rabobank, notes that yesterday saw slight market repositioning ahead of key US data today and, much more importantly, that crucial Yellen appearance tomorrow.

Key Quotes

“In particular, we saw another attempt at a partial rebound in the Dollar index, although this looks more like the reaction of a market that is very short USD rather than one that is suddenly ready to be persuaded to go long again. Equities stumbled for once in the US, though they rose in Europe and Japan, and US Treasury yields also nudged higher. Obviously being positioned wrong tomorrow could prove costly, and we can expect nerves to increase markedly going forward from here. That, however, is the very small picture: the bigger picture of where we stand in markets remains far more taxing on the nerves.”