Equities drift higher after yesterday’s slump

It looks like the recent selling in equities might be over as indices were down two days in a row, which is somewhat unprecedented nowadays. Therefore, dip buyers should return to the market soon, and US benchmarks will most likely rise to new all-time highs soon as the overall bullish momentum remains very strong.

Later in the day, the focus will be on Canada. Firstly, the country will release CPI numbers, which are expected to rise sharply, with the yearly change forecast to jump to 2.3% from 1.1% previously.

Moreover, the Bank of Canada will hold a policy meeting, with markets expecting the central bank to leave the main change unchanged at 0.25% and the following commentary to sound dovish. The USDCAD pair will surely be volatile today. 

Back in Europe, the UK CPI rose 0.7% on the year in March, slightly below the 0.8% expected, putting no pressure on the Bank of England to tighten its ultra-easy monetary policies.

Elsewhere, the EURUSD pair posted what appears to be a nice bearish pin bar yesterday, potentially forming a short-term top. Should the euro drop below 1.20, further decline toward 1.1950 might occur.

Source: https://www.axiory.com/market-news/equities-drift-higher-after-yesterday-s-slump