A note of caution seems to be creeping into the markets. As we’ve noted soooo many times in the past, the risk on/risk off button can be flipped on and off at the drop of a hat.
As mentioned earlier the market will have noted the Roubini op-ed in the FT. Elsewhere, Harvard’s Professor of Economics Martin Feldstein has reiterated his warning that the U.S economy could experience a double dip contraction. Food for thought among all the recent optimism.
EUR/USD down at 1.4310. Supports now 1.4300/05 and 1.4275. GBP/USD down at 1.6470. Supports at 1.6440/50 and 1.6420.
