USDJPY back above 121, EURUSD loses 70 pips from the high
The move in the euro confirms the liquidity issue I pointed out earlier
The Michigan numbers aren't usually massive market movers but that jump in conditions has halted the slide. As I said in the data post, sentiment is one thing, converting that to cash through the shops is another
Michigan survey director Richard Curtin has been out with the conf call;
- Buying attitudes and finances have improved
- Sentiment gauge reflects stronger income gains
- Survey shows record low long term inflation expectations
- Buying plans for durable goods is at the highest since 2006
- Discounting is boosting buying plans
- Consumers are expecting discounts when holiday shopping
- Rising wages will not boost labour force participation next year
Beware of the retracement of the retracement now as liquidity won't have suddenly got any better
