Greece threatening to leave the euro zone? Check.
Iran test firing missiles in a geopolitical choke-point? Check.
Spanish yields blowing out 20 bp? Check.
EUR/USD up a cent? Umm, check. S&P flying too.
Looks like we’re having about of the “January effect” where, last year’s losers stage an early January bounce. Seems like the market also has a strong ISM figure priced in. 53.2 is the consensus forecast.
Heavy congestion is seen on the charts in the 1.3060/85 area with stops above 1.3100. All comes don to the data, I’d suspect. Strong ISM and we make a run for the stops. Weak, ISM, we sell off.
