U.S. equity markets are trading higher overnight as investors are buying on speculation that government reports this week will show the global economic recovery is back on tract. Easing of tensions in Europe is triggering a short-covering rally in the Euro which is helping to lead to increased demand for higher risk assets.

U.S. equities are called higher this morning after posting a strong gain on Wednesday and a follow-thorough rally last night. The stable Euro is contributing to the rally along with position squaring ahead of Friday’s U.S. Employment Report. In addition, traders seem to be getting a little more optimistic that the global economic recovery is getting back on track based on fairly decent U.S.

U.S. equity markets are expected to open better this morning due to a pick-up in demand for higher yielding assets. Investors are also feeling more confident in the long side following last Friday’s better than expected Non-Farm Payrolls Report. The lack of fresh major economic news until at least Thursday could keep the indices on course for further upside action.

The U.S. Dollar is under pressure overnight against most major currencies except the Japanese Yen. Trading has been light and less volatile than last week’s trading conditions. Shortly before the New York session opening, the Dollar is mounting a slight comeback and trading off its lows against a few of its majors.