The FOMC meeting yesterday spurred another wave of risk reduction, even in EM where we had expected the process to slow. USD strength, though, is finally undermining commodity prices, as growth fears take over from inflation, and commodity currencies are finally coming under selling pressure. AUD/USD breaking and closing below 0.9915 would signal the end of the uptrend of the past two years. In the majors, cable is being marked down sharply towards its wider range lows.
Click here for PDF version of the report:
BARCLAYS CAPITAL
TECHNICAL RESEARCH