Trading Video: Dollar and S&P 500 Rebound Doubtful, Traders Watch Pound and Euro

Talking Points:

• The rebound of 'risk' assets slowed further Monday with a volume drain paring momentum

• Neither the USDollar's inch higher nor the S&P 500's 50% retracement of its decline read permanent

• FX traders keep their focus trained on heavy event risk for the Pound and Euro later this week

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The rebound continued for sentiment measures, but conviction is still distinctly absent. While the S&P 500 has retraced 50 percent of the losses suffered from its July peak, volume has moderated into the recovery. More disconcerting is the reticence of the short-term dip-buying that has repeatedly turned the market back to its long-lasting bullish run this past year. A healthy skepticism dominates measures from equities to carry trade to high-yield assets. In the meantime, as investors work out their consensus for sentiment; upcoming data like the US business optimism survey and Japanese 2Q GDP release take a backseat to deeper hopes/fears of volatility on UK and Euro-area data rising Wednesday. We discuss trends and event risks in today's Trading Video.

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