US equities continue to ignore employment reports, a trend we’ve seen over the last few months. No matter how bearish the figures, the gloom among investors has factored in far worst. A big short-covering rally remain a risk, but as we’ve see time and time again, rallies are for sale in global equities. Bank of America and Wells Fargo both reported upbeat operating conditions in the first two months of the year, helping sooth nerves on Wall St a bit.
UPDATE: Reuters reports trading irregularities at Merrill Lynch London, so perhaps BofA spoke too soon.
UPDATE THE UPDATE: The exposure is said to be only $120 mln. A mere bag of shells…
EUR/USD is getting a modest lift from the equity bounce and trades at6 1.2720. Stops reside in the 1.2735/40 area and again above 1.2750 resistance.
