With the end of QE2, month-end and quarter-end approaching, the selling and break lower in US Treasuries highlighted earlier this week have catalysed a change in behaviour across several assets.
Copper has emerged from of its lacklustre contracting range of the past month, and the Dow Industrials has potentially completed a small Double Bottom.
Furthermore, EUR/JPY and AUD/USD are pushing back above their daily cloud, and several Asian currencies are regaining their bullish footing against the USD. Although EUR/USD still remains within its larger 1.4100-to-1.4550 range, it appears that the Greek parliament’s passage of the austerity measures has eased the pressure on risky assets for the time being.
BARCLAYS CAPITAL
ECONOMICS RESEARCH | INSTANT INSIGHTS
Foreign Exchange Research