We’ve got a lot more ground to cover before the week is through. Bernanke is on the Hill tomorrow; ADP is Wednesday. The ECB could screw over the market by not cutting on Thursday and payrolls round out the week on Friday.
Stock and currency bulls can easily look past the employment data, pointing out quite rightly that it is the last sector to turn up. The ECB is more of a wild card. To my way of thinking, there is no way the Buba would cut with signs of economic life starting to be seen. The ECB will show us on Thursday whether it is son of Buba or if it is Buba-lite.
EUR/USD trades at 1.3478 as the S&P flirts with the 900 level. A close above that level would be quite bullish and should keep the “risk trades” well supported in the days ahead.
