The strong risk rally of the last few days seems to have stalled pre-ECB, as China promise to deliver took commodities on a steep rally yesterday, on Thursday ECB will need to deliver on their promise. Expectations are high ranging from expansion of QE to corporate bond buying. After yesterday, commodities have stalled, iron and metals have not performed today after having rallied quite a bit. AUD has seen a correction, as official speak did not rule out a rate cut, Asian emerging markets FX lost ground as locals bought USDs. The correction remains small compared to the large moves lately but momentum has died out. Oil is keeping RUB very strong, CAD remains strong as well even with the correction from 1,3280s. Emerging FX is trying to correct but ZAR and MXN are still strong without a major correction. Gold remains strong but has not broken through 1270s for a few days straight now. It seems we are on a stall day for FX as we wait for ECB.
