The risk-on trade doesn’t look quite as attractive as it was this morning after the disappointing services ISM. The idea that the consumer was automatically going to be there for the goods that the manufacturers are now making, was to me always a bit of wishful thinking. Saying that though we’ve only fallen 20-30 pips in Eur/Usd while the affect has been much more pronounced in other markets, with S&P Futures now down 11 points and US bond yields 5 points lower. The market now needs to position itself for the trifecta of BOE and ECB meetings tomorrow and of course the payroll report on Friday.
Hearing some more soverign names buying in Eur/Usd at 1.4355/60.
