After some excitement earlier this morning on the surprise 50 Bps. cut In China reserve requirement,markets showing very little incentive to trade.Month end adjustments hopefully will add some volatility when respective markets do close.Euro is heavy , Eur/jpy -200 pips usually not good for Risk on trades, but Stocks still hold gains here in the US.I am hoping for a pick up in action as the European and London Closes will be upon us. Spooz have found support on Fridays pit low of 1942.30 ish but only have 6 point range since 8:30 cash open.Pit range in the 30 years is a somewhat respectable 20 ticks.
Chicago PMI was released this morning and did miss expectations by a healthy 2 standard deviations.This number has lost its significance and markets pay little attention to it.All eyes turning to the ISM and payrolls release later this week.
Oil, Both Brent and wti are bid.The relative strength favors Brent as the Spread between the two products continues to trade further into negative territory. A cut In OPEC production and an Increase in Cushing supplies enough to explain the move.
I believe we see a post Europe close bounce in Spooz
Gold up greater than 10% for the Month