It’s been risk-on for days despite a looming US budget showdown, an ECB hike, and a Portuguese bailout.
Today, we get a Japanese earthquake and all of a sudden we get spooked.
Stops in USD/JPY and AUD/USD have been tripped. EUR/USD stops below 1.4240 and 1.4225 are the most vulnerable one’s about at the moment.
US Equities have turned lower after stalling just below trend highs the last two sessions. Keep an eye on oil and gold. oil is holding up fine, now at $109.20 but gold has dipped slightly to $1457.50 from earlier $1464.80 highs. If they sell off, look for the dollar, JPY and CHF to claw back some losses.
