Oil is off its highs (at $89.73, now at $88.68) but the US bond market rally continues as investors seek the safety of the deepest, most liquid markets as turmoil grips Egypt and threatens other Arab capitals.
US yields are at 3.32 bp, down from 3.45% after the US GDP report while the S&P trades at session lows, down 1.75%
Selling of Euros against safe-haven currencies like the JPY, CHF, and USD along with liquidation of long EUR/USD positions on stalling upward momentum has pushed the single currency below 1.3600. We trade now at 1.3593.
Considerable stop loss sell orders are eyed in the 1.3565/70 area and could be targeted before long.
