AUTOREFRESH 
It’s all quieted down pretty quickly…
After a very spirited first couple of hours in New York, we’ve settled into a sort of quiet consolidation. Risk aversion has clearly eased in the wake of upbeat Chinese and AUD data overnight and the surprisingly firm ISM figures is icing on the cake.
Traders are reluctant to go too far out on the risk limb with jobless claims tomorrow and the employment report on Friday still to contend with.
Assuming the employment report shows any signs of strength, we will see continued repricing of risk, with stocks rising and bonds falling. Commodities may be more of a mixed bag as stronger global growth may undermine the “hard”asset part of the commodity equation: central banks will not have to be as aggressive trying novel forms of easing if the economy looks like it is beginning to right itself.
USD/JPY continues to stall in the mid-84.60s. EUR/USD is finding buyers on dips below 1.2800 and commodity currencies remain all the rage as AUD approaches .091 and USD/CAD consolidates below 1.0500.
Thx for the summary Jamie. I like selling AUD, as you say commodity currencies are flying but commodity prices have a mixed outlook – the data wasnt that good IMO.
The spx is trading dead sideways, in a 3 point range. I’m betting on overbought indicators correcting and another leg up, here shortly.
@ Michael Technically yes, fundamentally no. What were those 3 rules again?
Allow me, ta learn ya.
Jamie: a major news wire lists about one yard of EUR/USD in vanilla options between 1.28/1.30 to expire Friday morning. In your opinion, would that be enough to hold 1.2800 into NFP’s? (assuming the report is accurate).
Really depends on how concentrated the strikes are…if the yard is spread out over two big figures in anything like even amounts the impact would be meaningless.
Why is the FX / and SPX so so quiet and rangebound and so low volumes. Low volumes can be understood, but why no movements.. that too all of a sudden!
The options between 1.28/1.30 are kinda spread out. I’ve always wondered whether different levels got together to gang up on dealers. I guess you’re saying it’s every man for himself… Do option dealers have the sense to cooperate when it will pay off?
You guys and gals can actually decipher that Dinko persons jibber jabber? I’m impressed.
AUD/JPY looks interesting. Also aud/usd is @ that magic 9080 level again. Aud/jpy still has comfortable room to move up to 78.00 and it’s holding the 20sma daily 76.66. One note the 20 and 50 have crossed slightly.
Come on, pansies! 1080 and dress this bad boy up. lol
Heee Haw! MM