Well so much for my short EUR/USD idea…
We’re back to trading reflation and higher stocks, commodities and bonds (and correspondingly lower yields) are helping prompt traders to dump the dollar and flood back into “risky” assets like commodity currencies, etc.
USD/JPY took a pounding on the latest move, slipping to 95.65 as lower yields cut into the greenback’s attractiveness.
Oil is ip $2 or nearly 3%. Stocks are up and bonds are lower in yield as the Treasury shipped $104 bln in notes into the market with no problems at all. Bernanke survived his trip to the Hill with barely a scratch, another market plus, which at the moment at least, is translating into dollar weakness. Oh well…
