Wacky Wednesday? It looks as though the immediate downside pressure in cable and EUR/USD have been alleviated as resistance at 1.6260/65 and 1.4250 respectively have been broken. EUR/JPY is adding to gains as well, nearing the 132.00 level where a broken trendline should slow its decent.
Gold continues to soar today, raising the question is it risk aversion or reflation? In Gold’s case it appears to be both. With US bond yields at 2-month lows, it ain’t dollar weakness or inflation that is the worry. Stocks must be the culprit, but even they are trading flat…tough to call the yellow metal.
