The war of words between the leaders of the United States and North Korea continue to dominate investor sentiment. After the initial stock market sell off, U.S. indices recovered to close at their highest levels on the session yesterday, only for the index futures to tumble again as the new trading day got underway overnight in Asia.
The dollar bulls will certainly want to see a bigger-than-expected rise in the average hourly earnings index. But at 0.3% m/m, expectations are running high and as such the scope for disappointment is there. Meanwhile Canadian employment figures are expected to have risen last month at a slower pace of 13,000 compared to last month’s 45,300 figure.
The big theme at the moment is rising bond yields as key central banks attempt to move away from the era of extraordinarily loose monetary policy and zero interest rates. This is due mainly to rising levels of inflation, higher rates of employment and steady growth across many developed economies.