The events which move the market the most are the unpredictable ones and pretty much everyone had presumed that Helicopter Ben would continue with his recent emphasis on slow investment growth rather than improving employment; we were all wrong. Gold and Silver got thrashed and the USD bounced hard. Personally I see this move as just another squeeze on short-term positioning but USD bears would do well to be cautious over the next few sessions.
Most of the majors USD pairs remain inside well trodden ranges and it’s hard to get overly excited; EUR/USD has pulled back towards it’s break-up level at 1.3315/25 and there will undoubtedly be some relieved shorts out there who are happy to buy some here; USD/JPY has yet to challenge the Monday morning highs at 81.65; AUD/USD has again confirmed the range highs at 1.0850; and cable is doing its own thing as usual.
Good luck today.
