Risk-loving investors have turned oil prices and equities higher, putting the reflation trade back on track. The combination of an improving US (and global) economy is helping lift spirits but not the dollar. US debt levels will balloon in the near-term no matter what the economy does and will likely balloon in the long-term as well.
Cable, EUR, AUD and NZD are all at or near session highs with momentum outstripping fiundamentals at the moment regardless of what crosses the tape…EUR/USD trades at 1.4315, GBP/USD at 1.6575, AUD/USD at 0.8225, and NZD/USD, at 0.6590 after breaking its 50% retracement…
