Talking Points:
• Both investor sentiment and Dollar performance are mixed after Friday's NFPs stirred Fed rate speculation
• As risk trends start to waver, the market's perception of negative monetary policy influences is rising
• While a number of Euro and Pound pairs show great technical potential, data may disrupt setups
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Even central bankers are starting to weigh in on the detrimental side effects of monetary policy. While reasonably intended for recharging growth, jump starting inflation and perhaps even tempering financial market volatility; the negative repercussions are becoming more obvious to the masses. As we find risk-sensitive benchmark - S&P 500, Yen crosses, high yield assets, etc - struggling for progress, it is increasingly important to keep tabs on the former drivers should they fail to keep pace or prove the trigger for positioning reversal. The potential in the speculative balance is considerable, but patience is critical. The same is true of a few other benchmark currencies that are leaning on strong technical patterns but face fundamental catalyst in the near future: namely the Euro pairs heading into a special Eurozone ministers discussion over the Greece situation and Pound pairs ahead of the BoE Quarterly Inflation report. We discuss these themes in today's Trading Video.
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