Disliked{quote} 1. Unrest in Ukraine and Middle East will increase demand for the safest assets. 2. Once we break 170 the next floor is @ 165. 3. The bond market is always right. Difference between 2 yr yields in the US and Germany expanded to 62 basis points, that's the widest since April 2007. when you factor in the US Fed's next move is not easing rates but raising rates. Institutions will have to adjust their portfolios eventually to Interest rate changes. ( this tends to be violent after consolidations) Last but not the least Futures contract traders...Ignored
Yes I know FED is finishing bond-buying program in October, so that means easy money out of market which should be positive for USD and to some extent equity negative. Also I would put my argument as BoJ wants Yen to depreciate and are talking of QQE as long as needed and with BoE also on the path of rate rise what can be the direction of GJ. Again look at UJ it has gone to almost 6-year high, so with keeping all this in mind, would you still not say that upside is intact.
PS Add: I hope we can start a healthy discussion where others can also join in.