The S&P is back below its 200-day moving average this afternoon helping drag EUR/USD and EUR/JPY lower in light trade. The S&P is down 0.6% while EUR/USD is down to 1.2275.
On the fixed income front bonds trade like we should be afraid, very afraid.
2-year notes are below 0.70%, now at 0.697& after the lowest 2-year auction rate on record. The 10 year note yields a mere 3.17%. Time to refinance again…
1.2240 remains key support near-term in EUR/USD with 111.00/05 important support for EUR/JPY. We are testing that level as we write.
