Is it true?
Are we to expect a return to fundamentals with relation to the USD?
Will positive US economic news prompt higher positive USD sentiment as opposed to encouraging the risk trade?
Will up be up, and down be down again?
Depending on who you ask, I am sure that you will get a different answer. Yes, for a moment today in the latter part of the US session it appeared as if though the negative correlation with US equities was reversing. Then, a few minutes after the bell, as Microsoft and Amazon earnings came out, what had seemed like a return to basics now seemed like an eery premonition of what will surely be a less than risk friendly day tomorrow.
It is my inclination to actually take a day off from trading tomorrow. It seems to me to be one of those moments where one cannot accurately gauge what the crowd will be latching on to for guidance; and for EUR/USD intra-day fellows such as myself it may be wise to take a wait and see attitude.
