The Fed put the market through a volatility spin cycle and no side has won out yet.
I believe the dovish, dollar-bear crowd will gain the upper hand, leading to gold and risk asset strength. It’s only a matter of time (or one bad employment) until QE3 rolls out.
The focus will be on China in the upcoming session with the HSBC flash manufacturing PMI at 0230 GMT. There is no consensus estimate but the prior reading was 48.4.
Before that, at 2245 GMT, New Zealand releases first quarter GDP with a 0.4% q/q and 1.3% y/y rise expected.
