The reflation trade experienced a broad pullback this morning after cast trading got going on Wall Street. Skeptical comments on the global economic outlook from Goldman Sachs CEO Blankfein along with hawkish comments from Richmond Fed’s Lacker helped underpin the dollar.
Flow-wise, dealers saw Middle Easter and Russian selling on the move that culminated with a brief dip below 1.4000. Weren’t the Russians just talking about dumping US bonds? Curious…I guess they can get caught wrong-way around just like the rest of us…
1.4050 is resistance on rebounds intrday while 1.3960/70 is moderate support on pullbacks intraday.
