Unreal. Grind up for a weak, give most of it back in a day. That’s a bear market for ya. The S&P fell nearly 10% and the Dow over 8%. Oil fell back below $50 and gold fell nearly 6%. The dollar was a winner, but its gains came early and the flight to quality was more into the JPY than the greenback today. Traders are reluctant to aggressively bid up the dollar as the Fed may embark on a course of quantitative easing. They dipped in a toe last week with the announcement of their intent to buy $600 bln in Freddie and Fannie paper and Bernanke said in a speech today that they could very well do more.
EUR/USD heads out at 1.2615, USD/JPY at 93.15 and EUR/JPY at 117.55, near session lows.
I’ll be on the road tomorrow, so posting may be a bit light. Best of luck to all.