Morning 4-28

Yesterday Draghi Sounded dovish in his Q&A portion of his press conference, But today Hard Data contradicts this sentiment. Euro Zone CPI was released and both headline 1.9 vs. f/c 1.8 prior 1.5% and Core 1.2 vs. f/c 1 prior .7 beat expectations. The core CPI was highest since March 2013.Euro rallied and bunds were sold. Euro area to watch is this week’s highs 1.0951, then 1.10 handle. A poor GDP report from the US could give the energy the Euro needs to break above that area. The other item’s note overnight has to do with politics, of course. In an Interview with Reuters trump had this to say about North Korea “There is a chance that we could end up having a major, major conflict with North Korea. Absolutely, “We’d love to solve things diplomatically but it’s very difficult,” yesterday North Korea Ran some propaganda videos with Bombs hitting the White house. Plenty of Saber rattling between the 2 countries. Earnings overnight from some titans Goog and Amzn were better than expected .Analysts are raising full year Estimates for companies something they historically do not do this time of year.

Republicans said they will not bring a healthcare bill to the floor over weekend and this appears to clear the way for A Government budget bill to pass through Congress. A CR, Continuing resolution may be passed for 1 week so paper work surrounding bill can be written.
US GDP First look, Chicago PMI highlight economic calendar today. No fed speakers as they are in Black out period. Europe Closed Monday and japan on Holiday all next week. Fed meeting and Unemployment next week as well .Once we are done with GDP All eyes will be on politics again.
Oil Higher as Iran said they may be open to participating in future production cuts. Gold steady and spoos +2 handles. All eyes on Cattle open after 2 days of Limit up moves.

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