Larry Summers says Fed’s big rate cut was a ‘mistake’ after hot jobs report
The Put to Call Ratio in US stocks bounced off of relative lows from last Friday and so the odds are strong that there will be aggressive selling opening next week without something substantial to support it. An isolated metric but one that holds water usually. Euro likes happy stocks. It does not like mean stocks.
To keep it simple
EURUSD upside is limited a long as it trade below 1.10
USDJPY downside is limited if it can stay above 148 but scaled down interest as long a it is above 147.20
Geopolitical risks ahead of the weekend.
Monday Oct 7 is the one year anniversary of the Hamas attack on Israel, so another reason to be cautious into the weekend.
GVI – 2:13 …….. I was just about to post something to that effect. The activity in UsdJpy is reflecting that with a return so far to what amounts to sideways activity in both spot and in futures and in options and forwards and other metrics. Someone would have a difficult time convincing me we are headed into a rose garden this Friday. Not to sound pessimistic.
Word to the wise: Any time there is economic data, the financial “experts” you listen to predominantly explain what the impact is and why based on their political leaning. Today’s data was decent. And so some are giddy as if inflation was never present after 2020 and was the devil prior to 2020.
Others are more sane.
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