It’s not clear that any of today’s price action will extend into the second half of the year (beginning tomorrow), but the reflation trade is suffering a profit-taking wave this afternoon. US equities are down 1.4%, oil is down 3.2% after having been up a similar percentage overnight. AUD is nearly a cent off its highs at 0.8060 while USD/CAD is up at 1.1625, the highest it has been since late May.
One sign of the EUR/USD leg of the reflation trade being temporary underpressure are reports of central bank buying on dips ahead of the 1.40 level. Same as it ever was…
