Most of the foreign currency futures traded as expected in the Far East, with all the European and commodity currencies but the pound marginally up, and the yen down. The short-term outlook is slightly bullish for the European and commodity currencies for about half a day and then bearish, and the opposite for the yen.
The European bourses are mixed, while gold and oil are marginally higher. All eyes remain on the US stocks, which had tumbled hard recently. The US indexes are up in pre-open trading. As I have warned you in clear terms since late January, the US stock indexes have a lot more room to go down. Only a strong rally in the stocks will maintain the current FX pattern for the balance of the global day.
My model is short all of the majors foreign currencies but yen.
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