We’re entering the crap shoot phase of the “market” now, with bets being placed on next week’s central bank actions driving most of the action. The big development this morning is the EURUSD, which was finally allowed to break down. It should have occurred last week after the ECB stood pat on additional easing.
But, of course, central banks have an aversion to prices tumbling as they’re pontificating. Kinda makes them look bad. Draghi is no exception – hence the after effect fireworks. And, to be more precise, you’d have to say the propping up really dates back to late June, when EURUSD inexplicably rallied after its Brexit tumble.
The big beneficiary, of course, is the USD, which moments ago broke through its SMA50. But, futures are still negative, for obvious reasons. This morning’s inflation figures suggest a rate hike is needed. In this case, what’s good for the USD isn’t going to help stocks. At all.
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