What goes up eventually retraces. We are in retracement mode this afternoon as most legs of the reflation trade see profit-taking. EUR/USD triggered some stops upon breaking 1.3380 intraday support while cable has done greater technical damage with the loss of 1.4990. We are looking at an outside day key reversal in GBP/USD (see forex jargon section for details).
Oil prices have turned lower and commodity currencies are on the slide as well. Bond yeilds are rising, but that is more a supply issue than anything else.
