Good Morning. Another somewhat quiet day on the economic data front. And we also have two Fed hawks (Hawk Dove) in Charles Plosser and James Bullard speaking today.
After the bell Spain was downgraded and apparently bad news is now bad news. Another indication that sentiment is shifting. The shelf life of a Spanish downgrade in the past was about five minutes. So far it’s at least two hours. In response to that Treasury markets moved higher in price (and eventually lower in yield when trading opens).
After a nearly 50 percent reduction in EUR short interest per COT non-commercial net positions, the EUR has now triggered short as of Wednesday’s close. Though barely by one pip, but a trigger is a trigger. And much needed downward momentum is also being profiled.