With so many potentially big developments bunched into a 36 hour period later this week, traders have been moving capital into defensive havens. Gold and the yen have spiked upward overnight with gold running up to $1,290 and USD/JPY breaking under 110.00.
Between Wednesday evening a ton of news is due that could potentially move the markets. Wednesday night brings China trade figures. Thursday brings and ECB meeting and potential changes in monetary policy guidance. Also Thursday is former FBI Director Comey's testimony to Congress.
The hard fought UK election campaign comes to a head with the vote Thursday and results due Friday morning. In Canada a Bank of Canada review of financial services is also due. Whether this rally is sustainable or not depends on whether any negative surprises come out of these developments.
Indices are trading flat (US index futures and the FTSE) to down moderately with the Dax falling 0.75% on its return to trading in what could be the calm before the storm. UK election polls have been all over the place varying between small and large Conservative leads. In Europe, it appears Italy's political parties have come up with a plan to enable an election to be held later this year, rather than dragging out uncertainty to spring 2018.