That seems to be the story in equity markets today. Nothing all that bullish out there to spark the bounce, from what I can see, but sentiment has been quite bearish and fundamentals continue to deteriorate, so it feels like a dead-cat bounce to me.
EUR/USD looks bullish from a technical perspective but the growing odds of a double-dip keep me from jumping on board the bandwagon. My three little rules say that when fundamentals and technicals diverge, side with the technicals. Rules are made to be broken…I really hate the idea of ignoring a two-year old risk/currency correlation; to me the risks remain to the downside for the euro and to the topside for the dollar…
China and their hangers-on continue to play the ranges, buying below 1.2500 and selling above 1.2600. Nice work if you can get it…We trade now at 1.2585.