The majors are swinging around quite erratically this morning, jumping to 1.2975/80 as stocks open strong only to slide back to 1.2895 at the moment as intraday longs are squeezed out. Much of the pricing is being done via machine, dealers say, helping contribute to the choppiness. Algos are bloodless, responding purely to supply and demand, leaving logic aside.
The strong rally in gold is garnering a good amount of attention this morning. Usually gold is the anti-dollar. A rally in one generally leads to a slide in the other. In this environment though, gold is more of the anti-currency. None of the fiat currencies is viewed as entirely safe in this environment. It is next to impossible to predict the next move against this present backdrop.Stick close to the sidelines until the signals become clearer.
