Sentiment recovering
The S&P 500 has pared declines and is trading down 6 points to 2040 after falling as low as 2026.
The recovery in stocks has boosted USD/JPY to 122.97 after falling as low 122.40 in the post-retail sales dip.
The correlation with stocks is tight at the moment. Money is flooding into the US because it's still the best place in the world for developed growth. In the old days, the money would find its ways into short-dated bonds for carry but in the zero-rate world it goes into stocks and junk bonds.
