After this morning’s risk-off slide in EUR/USD and GBP/USD (as well as most of their crosses), we’re in comeback mode this afternoon.
Stocks are well off their lows, as are commodities like oil. Oil’s range was more than $5 today and we are now at $95.10, after retracing about 1/3 of the losses on the day.
1.4287 is the 38.2% retracement of the drop from morning highs at 1.4554. We bottomed this morning at 1.4184.
Talk of BOJ intervention to come (on behalf of the MOF) has helped steady markets a bit. If the market feels 76.25 is Japan’s line in the sand, traders will be happy to fund higher-yielding investments with cheap JPY.