It’s turning into one of those markets where uncertainty breeds contempt. The momentum-chasers have got caught buying a couple dips in US stocks now only to watch the gains fade.
USD/JPY is down 50 pips from its highs in sympathy. A lot of money is sitting very pretty in long-stock trades and with the year coming to a close, why not take profits?
Expect more of this kind of volatility over the next 10 days.
