Oh, for goodness sake… ply the market with caffeine – or even a copious supply of energy drinks. This is just awful. You’ve heard of the foxtrot? Well, I think the market is dancing to the funeral dirge. It’s enough to make me sleep 26 hours a day…
Rant over. At least we’re basically seeing what I have been looking for – but just so slowly. Will the pace accelerate? I’m pretty sure that it will not, but still maintains the pace of a group who carries the coffin. Of all, it was GBP/USD that made a more defined move but looks like it had a sudden gush of blood to its brain. As such, it tends to suggest a deeper pullback. At the same time it looks as if EUR/USD and USD/CHF will continue their dollar bullish trend, but I can’t say that either of the two continentals will provide the same effort as the pound…
The Aussie, having reached the first reversal target, stalled and saw its recycling - that was always a strong risk. Whether it will provide the same effort as GBP/USD or the slothful progress of the continentals is something we shall have to observe…
USD/JPY made further gains and dragged EUR/JPY higher – and still needs to push a little more else it will return to the downside, but probably in a longer sideways range. Given that EUR/USD appears to require further losses we shall have to observe USD/JPY for the catalyst, but I’m not sure it’ll do so quickly. I should add that the structure in USD/JPY is extremely unusual and does tend to give me the feeling that it’s not really constructive – even if I have treated this rally as potentially impulsive.
Overall, this does suggest that today could be yet another day of complications…