Business as usual this morning. In order to sustain the dream into the US Open, USDJPY was ramped - running stops to 108.50 to ensure the smoke-and-mirrors gains on another Italian bank bailout rumor enable just the right amount of reytail traders to get muppeted.
USDJPY completes infamous "stops taken out" formation
— zerohedge (@zerohedge) April 11, 2016
Once the open struck, USDJPY dumped sending Gold soaring back above $1255.
This morning's 160 point spike in Dow Futures - out of nowhere - was predicated on hopes of an Italian bank bailout. While this may seem like an odd reason to "buy buy buy" US equities, in the new normal, it really is not.. and when put in context, the 'bounce' in EU banks should do more to scare than soften investors' concerns...
Remember the last time headlines hit that Italian banks were to be bailed out (by ECB buying that time)...
Oh and Deutsche Bank hardly blinked...
Still think this is sustainable...
When it comes to its business practices, online retailer Overstock and its CEO Patrick Byrne have a history of being unconventional. From being the first major retailer to accept Bitcoin as a form of payment, to creating a subsidiary which uses the blockchain and related technologies to build services that can track the exchange of financial securities, to Byrne's relentless crusade against Wall Street, all the way to being a quasi prepper (recall "Overstock Holds 3 Months Of Food, $10 Million In Gold For Employees In Preparation For The Next Collapse").
Early USD weakness has suddenly been erased on JPY weakness pushing USD index back to unch. However, the chaos in the currency markets is seemingly sending investors fleeing for silver, gold, and crude as the latter tops $40 and the former hits 3-week highs...
USD Index spikes back to unch on suddeny JPY weakness...
But commdoties don't care...
Crude tops $40...
Silver to 3-week highs...
While the market is still enjoying the post-NFP weekly data lull, economic data starts to pick up again in the coming days, alongside the start of the reporting season. Below are this week's key events.
From DB, a brief recap of all upcoming global events:
With a particularly quiet start to the week today and no notable releases due out, we’re jumping straight ahead to tomorrow where the early data is out of Germany with the confirmation of the final March CPI data.