EURUSD and equity markets are undecided, European sovereigns have rallied modestly back to earlier day tights but no further (and Portuguese debt is underperforming), and credit markets in Europe are leaking modestly wider so far. The biggest movers initially appeared to be AUD (carry FX as we noted earlier) and the precious metals (with Silver outperforming Gold so far). Cable (GBP) is weakening relative to USD and EUR and that is holding DXY up a little here. Treasuries are doing better. As we post, the USD is now strengthening, ES is losing steam, and gold and silver are slipping back. CONTEXT [8]is lower than pre-LTRO as risk is leaking off for now.
[9]
Trying to aggregate all the moving parts, we note that CONTEXT (ourt broad risk proxy) is now lower than pre-LTRO but there remains a lot of volatility in the various assets:
[10]
European Sovereigns this week are unch but Portugal is really starting to lose it again...
[11]
Corporate credit markets are also leaking wider (lower on the chart) as financials modestly outperform for now...
[12]