Remember musical chairs? The game played at kids parties before moon-walks and laser tag became the standard? There would be one less chair than there were players and when the music stopped the players would scramble to grab a chair. If there were no chairs left, you were out of the game. The music has not yet stopped for EUR/USD, GBP/USD. AUD/USD and the like but it does seem to be more muted than it was earlier in the session.
US equities are giving back a fraction of their early gains. They are now up about 1% on the session versus in excess of 1.5% earlier in the day. Momentum in the currencies has slowed as well with the market looking to the newswires for the next catalyst. A European holiday on Thursday and London and US holidays on Monday should see markets begin to this out in the coming days. That is a double-edged sword. It makes markets more choppy but more easily bullied, so it stay on your toes folks…
