Why? Don’t really know…
EUR/JPY, EUR/CHF, AUD/JPY, etc. have all gone into a fast retreat, dragging both legs of many of these crosses lower. EUR/USD has fallen all the way to the 1.4112 level before attempting to stabilize. US Treasuries are rallying strongly after falling sharply overnight as investors sold Treasuries and bought mortgages. Now they are back to breakeven, about 20-odd bp from the low yields of the session. Unintended consequences? Could be…Stocks are well off their highs,as we feared fist thing this morning.
