Gold Hits $1280 As Stocks Edge Lower Despite Small Carry-Trade Rebound

More of the same this evening as Friday’s close not off-the-lows in stocks has seen no dead cat bounce yet in early trading. The 2nd worst trade deficit ever did not help USDJPY which was already sliding lower, back under 102.00 and to 7-week lows. Most of the USDJPY move was catch-down to US and Nikkei futures moves from late-Friday. Once it recoupled (briefly) JPY staged a small fade-back (off USD 102.00 and EUR 139.50) which dragged Gold back off its 2-month highs at $1,280 briefly. However, the rally in JPY carry is having no impact on US equity futures which remain marginally red… a problem for the momentum igniters… Perhaps even worse, the Nikkei is starting to lose its correlation with JPY once again.

Oops – Nikkei is not behaving itself…

 

and US futures continue to slide…

 

and gold tagged up to 1280,…

    



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