So what have we learned today?
- There is no sovereign debt, not matter how rank, that cannot be presented to the ECB as collateral
- That the slowdown in US growth in the second quarter of the year looks increasingly likely to have been a result of the Japanese earthquake and terrible tornadoes and floods rather than a cyclical slowdown
- That buying against the 100-day moving average tends to be a good risk-reward play
We’re now back in the middle of a large triangular consolidation, meaning we’re pretty much in no-man’s land on a medium-term perspective. If you missed the bounce, stay patient. If you are itching to sell, use 1.4440/50 as your backstop. A break back above that level will likely see is work higher within the range, just as it set off a fast decline when we broke below earlier this week.