IMF managing-director Strauss-Kahn says we are a long way from a situation where the dollar’s supremacy would be contested.
More significantly, perhaps, is the sharp slide in oil prices today. Crude is down over 6% and more than $4 on the day. This is helping spark concerns that the reflation trade has run too far, too fast. China’s 5% equity decline overnight helped set that ball rolling and continues to reverberate through the global markets.
1.4015 is next modest support on the intraday charts. Expect stops below 1.4000. We trade now at 1.4030.
