DXY retraced some last night as markets wonder if enough new tightening has been done:
Oil is stuck in a nasty rising wedge:
Base metals relief rallied:
Miners (NYSE:RIO) barely raised an eyebrow:
EM stocks (NYSE:EEM) stopped falling at least:
Junk (NYSE:HYG) did better:
As yields eased:
And stocks firmed:
US durable goods came in soft and the Dallas Fed contracted.
At issue for the market is whether or not the US January data pop is real or seasonal, both in the form of warm weather and BEA numberwang. Both GDPNow and InflationNow have turned very strong:
I can’t see further big moves in forex either way before we find out what is real and what is imagined.