Every one short? Good. Now we’re gonna squeeze you where you shouldn’t be squeezed…
The forex gods have conspired against short-term momentum traders to set off a big squeeze. Cable is leading the move but it is being seen across the board as “risky” assets are in heavy demand after being shed overnight.
Cable triggered topside stops above the 1.6510/15 level while USD/JPY did the same above 96.10. AUD and CAD are zooming as well.
EUR/USD is a laggard, perhaps being restrained by comments from the ECB’s Stark that imply the European economic recovery is a stimulus-led sugar rush. It holds below 1.4215 resistance.