The S&P is up just less than 1% with about 45 minutes to go in the session. Recession fears have been dialed back greatly today after surprisingly robust US durable goods data. As the recession risks recede, the odds of further quantitative ease from the Fed recede as well.
The dollar is doing a tap dance, supported by higher yields on the one-hand and hurt by rising risk-appetites which prompt investors to seek higher yields than those available in the US. USD/JPY and USD/CHF tend to outperform against this type of backdrop.
Be mindful of very large stops in the 0.8025/50 area. Do not be quick to fade a USD/CHF rally if those levels are breached. EUR/USD trades at 1.4425, USD/JPY at 76.96, USD/CHF at 0.7955.
