As market players all return from the Easter holiday, you have to wonder what the deal is with the U.S. economy. Despite promises of additional rate hikes and a reduced balance sheet for the Federal Reserve, the long-term yield curve remains low. Markets may be cautious given the current geopolitical context that sometimes raises fears of a third world war. Another possibility is that there is a major divergence in viewpoints between President Trump and monetary authorities. Even this morning, Treasury Secretary Steven Mnuchin confirmed that the strong greenback was a good thing, which is a total contradiction of Mr. Trump’s opinion.
This morning, the USD is relatively stable against other currencies with crude oil at $52 a barrel and U.K. Prime Minister Theresa May announcing that British voters will head to the polls on June 8. South of the border, key real estate data will be announced at 8:30 this morning.
