I think the next few days will tell us everything we need to know about the strength of risk appetite.
The Fed isn’t a factor but the upcoming China data could get things moving. Spain still isn’t in any rush to take the bailout funds.
Overall, the risk trade could be in for a rough ride. Cable might bounce back to 1.60 but I suspect we will see 1.5800 before 1.61.
What do you think?