Nasty DAX sell-off yesterday with no hard references in sight contrary to S&P and Nikkei which are still holding strong levels right at the lows.
Dollar strength from core levels is keeping the pair capped despite treasuries breaching 131 and gold 1182 on risk. Watching those levels to gauge risk (should have tracked the Jan close more closely.) and the remaining levels on S&P, Nikkei. We're right at the limits on bonds and dollar, imo, but the real uncertainty is oil/equities where its hard to find a reference on DAX or tell where China is heading and how that impacts the rest. As long as that plays out it's a case Euro strength negating/beating dollar strength on the pair at these overshot levels.
Unconventional policy measures have failed miserably so far in putting a dent in the sell-off (Draghi jawboning QE, Kuroda negative interest rates.) making normalision look pretty good in the process. Ie when you lose control after a while you really do- in Draghi's case the bastards just wanted/want him to keep escalating and this fire-sale is the result when he doesn't? and BOJ boldly surprised markets and still got taken to the cleaners a few days later.
Dollar strength from core levels is keeping the pair capped despite treasuries breaching 131 and gold 1182 on risk. Watching those levels to gauge risk (should have tracked the Jan close more closely.) and the remaining levels on S&P, Nikkei. We're right at the limits on bonds and dollar, imo, but the real uncertainty is oil/equities where its hard to find a reference on DAX or tell where China is heading and how that impacts the rest. As long as that plays out it's a case Euro strength negating/beating dollar strength on the pair at these overshot levels.
Unconventional policy measures have failed miserably so far in putting a dent in the sell-off (Draghi jawboning QE, Kuroda negative interest rates.) making normalision look pretty good in the process. Ie when you lose control after a while you really do- in Draghi's case the bastards just wanted/want him to keep escalating and this fire-sale is the result when he doesn't? and BOJ boldly surprised markets and still got taken to the cleaners a few days later.