Video: Markets Weigh Equities, Dollar and Yen Cross Corrections
• So close to triggering a break of serious support levels, the S&P 500 has rebound back into range
• With equities recovering, Yen crosses and other 'risk' sensitive markets would follow suit
• Is the rebound in risk - and pullback from the Dollar - a temporary correction or lasting reversal?
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Once again, the S&P 500 has pulled back from the cliff of a true risk reversal and has rebound into the comfort of its a three-month range. This bounce was not isolated to the long-standing speculative holdout - many assets with a 'risk' bearing found relief on the day. That would carry the Yen crosses up from their recent bear wave, lift high-yield markets and perhaps even lend additional pressure to the Dollar. Though a liquidity currency, the Greenback was unlikely finding sell pressure from that absolute theme. Instead, a one-sided FX move over the past seven months and similarly consistent commodity tumble (many such natural resources being priced in dollars) likely pressured profit taking. However this rebound starts though, can it turn into a lasting trend? Will event risk like Greece's planned meeting with the ECB, global PMI figures or the leading US ADP labor report contribute to the course decision? We discuss that and more in today's Trading Video.
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.