Forex: Dollar, Yen Tumble and S&P 500 Rally Speak to Clear Risk Drive
Perhaps the most convincing sign of a strong sentiment shift in the financial markets is when various risk-sensitive assets line up to a sharp move. That was what we witnessed this past session with the S&P 500 rallying back to resistance in its 100-day moving average, the USDollar dropping back to channel support and the yen crosses uniformly climbing. This would be a convincing potential trend development if there was a convincing driver for the improved sentiment. Yet, there wasn't. With the markets still dealing with unusual trading conditions (thinning speculative liquidity, big-ticket threats and a seasonality expectation), it is critical to remain vigilant and flexible. We discuss the risks and opportunities in today's video.
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.