As we said yesterday morning, the risks were tilted to the downside with the market putting more faith in the Fed than the Fed could ever hope to deliver. Even if Uncle Ben had delivered a fresh round of round of QE yesterday, I suspect we’d still be selling off today.
US equities are down 1.8% at mid-afternoon, commodities are getting toasted (CRB down 2%), and 10 year note yields are down below 1.60% again.
EUR/USD continues to flirt with the key 1.2550/55 area. Stops are perched just below that level.
