The US$ is currently retreating against anything with a value, and then some. However, we’re still short the happiness trade, just in case anyone’s wondering.
Gold is at 1610+. That makes the next interesting interplay come in somewhere around the 1615 level (trend line that I mentioned in my fortune cookie yesterday) and we also have a nice little 20D EMA posted nicely at 1619. Bulls, your move!
The Japanese yen cracked new attempts at the post-intervention low of 76.58, clocking in pretty nicely at 76.61, or a 0.03 yen difference. Again, bulls, move it! Third day on the attack, and the highest (although not most aggressive) so far. Long reloading seems to be in place!
OMX 30 is moving up against its three month daily Bollinger. (2.0 SD’s). 0.5% away at the time of writing, and also pushing into the end-October peak. Push push! Risk assets are on at the moment!
Note: Small retracement started when I started writing this, but it’s in the range of 0.1-0.2% for gold and 0.2% for the OMX 30. Yen at 76.50.
Late edit: The euro was at 1.3070 earlier, now at 1.3050, where the big figure is the 1.3080 resistance level which preceded the attack on 1.2860. Again, something more interesting to watch!
These could all be fairly interesting to watch with today’s lunch in Europe, or morning cereal in the US! No immediate implications in anything except the yen, which could end up rising like a helium balloon. More when it arrives, but keep your eyes open for the small breakouts that make the trends!
Later edit 1: (I might keep doing this as the markets progress.) The euro started selling lower against everything and anything that moves, and is now, 4-5 hours later, down 1% in US$ terms. Yes, you read that right. 1%. Possibly sparked by news out of Hungary, or on the smooth but disappointing German Bund auction. Dollar on for now… or? Doesn’t look that way. The yen held, not firm, but it has resisted quite vigorously and stayed its fall to 0.22% in US$ terms. Resulting thus in a new recent high in EUR terms – 99.3! Massive!
Gold also moved lower from its peak, by about 1% at the time of writing. (Just matching the EURUSD for a commodity? Weak!) Still, significantly, 1590 US$/troy oz was never really under attack. Move upwards is intact, but will lose steam unless or until we get a break of the 20D EMA (1618 at the moment).
Lesson to be learned 1: Interesting levels make for interesting moves, and prices may go down as well as up. Until the Fed wakes up properly, that is. Lesson to be learned 2: The dollar looks weak! Milk it for all it’s worth!