The triple whammy of: thin holiday trade, renewed rumors of Central Bank diversification & potentially narrowing yields sent the $ Bulls scurrying for cover late last week.
Much of late Thursday-all Friday activity can be attributed to technical bullying on the part of the Bears, as the Indx got shunted to these early summer lows. Next level reaction zones aren’t far off, with the 78.6 sandwiched between the focal points for Bear target area’s.
These pairs are approaching oversold on the mid frames, and with trade cranking back to near normal levels next week, the emphasis will once more turn to the Data releases.
The (ftrs) consensus regards a reduction of rates at the March 21 meeting shifted quite aggressively last week from 11% to 51% on the back of recent under par data output.
Next weeks data bag is full of goodies on both sides of the pond, & with a heavy presence of Fed Chief rhetoric, the stage looks set for increased volatility!
