European indices are also holding decent gains on the session now with the DAX up 0.7% and CAC 40 up by 1.0% on the day.
It is definitely some hopeful optimism but as we learned last week, the early gains definitely do not mean much. There was some modest dip buying on Friday that helped to salvage a poor start in Wall Street. That seems to be continuing here but I would still reserve some caution after all the selling in the past three weeks.
That said, things tend to take a life of its own when it comes to US trading later and I would be remiss not to point out that bond yields are still holding higher and perhaps eyeing a breakout as seen here. So, just be wary of that.
This article was written by Justin Low at www.forexlive.com.