Risk is off everywhere you look and the dollar is on and there are few escaping the weight of this… EURUSD key below remains at 1.2974… USDJPY likely falling back to/below the 80-handle and GBPUSD looks set to test the Feb 1.5648/44 lows… SEK & NOK are no exception and are thought to get scarred again today, both against the euro and more so against the dollar… Key refs above in the crosses at 6.8460 & 5.8220… EURSEK should test the yearly high of 8.9290 (with room for additional losses without stretching it short-term)… S&P500 & Co fell hard yesterday and VIX shot up from earlier overconfident lows… The FRA/GER 10y spread also catches the eye as it looks staged to widen through +151bps again – over which the 2011 wide would become exposed again… GER & US bonds are in this environment back in fashion and fresh highs in the Bund should be expanded and the T-note looks strong enough to break the ice at 131-19 and head for the yearly high… Brent Crude should close in on the $120-handle… EURPLN is also thought to extend gains towards 4.2420…
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SEB tech team