Spike lows in a number of currency pairs yesterday, particularly euro-related, imply bargain hunting. However, with the exception EUR/AUD (where there was a Key Day), there is a lack of compelling evidence for a sustainable recovery. Consequently, we see the bounce as a relief rally that ultimately will set up more weakness, and we would be looking to fade the move.
US equity markets are holding their ground, and while the S&P 500 remains above 1120, our bias here is to remain neutral.
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