Gold/FX/TSYs Signal QE-Off, Equities Still Believe
The inevitable headline-driven algo-kneejerk reaction to retail sales and inflation coming hotter than expected was a 4-5pts pop in S&P 500 futures (testing the magical 1410 line). But almost immediately, gold, silver, FX, and TSYs all reacted in a decidedly QE-off manner and are extending QE-unwind-type moves. For now, S&P 500 futures still believe in miracles...
EURUSD cracked 30 pips lower to unchanged on the day and Treasuries jumped up 4bps or so in yield.