We get the first look at Q3 GDP from the US in about 45 minutes. It’s gonna be ugly. But ugly is priced in. That’s one reason why stocks dropped 40% and currencies gyrated around the globe over the last few months: anticipation of a sharp global recession.
Do expect a shell-shocked market to remain devoid of speculative risk-taking as month-end and year-end for some institutions approaches. Order boards have already been wiped clean, depriving the market of liquidity down the road. Stops above key 1.3260 resistance have already been cleared. It’s hard to see what will be the catalysts for today given the big moves already seen overnight. Short of a 10% stock move like seen in Asia overnight and in the US the day before, The dollar may have already shot its guns for today.
