When you run the world’s biggest bond shop, you have a vested-interest in talking the economy down. Against that backdrop, consider the latest from Pimco’s Mohammed El-Erian. He says it is too early to declare the recession over and says stocks won’t continue their rally without revenue growth. He says Pimco is selling into the corporate bond and equities rallies and buying short-dated global sovereign debt.
EUR/USD is seeing a little short-covering as Europe heads home after holding above 1.4120 support. We trade now at 1.4155. Expect sellers in the 1.4170/80 area.
