No special effects in Fx markets

Green on the screen for equities, doesn’t have the all-clear sign for me.

Granted no chart goes in one direction for that long a time, trading can be choppy, but you must look to the forex market for directionality.

The US dollar has been sliding since the new year with little positive ticks. All the while being mauled by yuan intervention by Chinese regulators.

Dollar/yen, dollar/yuan are the key US morning pairings with dollar/euro playing a role later in the day.

That’s the driver of equities with dollar weakness pushing stocks lower and bond prices higher on safe haven bets.

US markets — being closed Monday for President’s Day — have to catch up on big moves in Asian and European stocks, but that should only sustain stocks and bonds for the morning before Fx influence kicks in.

Europe’s bank stocks are taking it on the chin again with Deutsche Bank leading the way down 4%, taking Europe bourses lower.


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