Trend of risk desire remains intact, although we are seeing a slight pullback today. Yesterday, the S&P closed above 1000 for the first time since the financial crisis began. As expected, the US GDP on Friday and corporate earnings releases had investors rushing into risk correlated assets. US ISM surprised to the upside yesterday, which sent the USD and JPY lower, as good news for the US is still bad news for the USD. The EURUSD posted new 2009 highs and is on course to test its Dec 09 peak near 1.4715/20. The USDCHF is looking to trade below 1.0590, which will be decidedly USD bearish. However, today we are seeing European equity heading south and US futures are pointing to a lower open. Correspondingly, commodities are also coming off their intraday highs as markets brace for a short term correction.

Tags:  equitiy equity European EURUSD Forex gain USD