Both the S&P and Treasuries were most responsible putting downside pressure on the markets today. Without any surprising and happy economic news for Wall St. to get euphoric over market participants decided the S&P 500 was a little too high and now was a great time to lock-in profits and take some risk off the table. The S&P 500 was trading at 4-month highs before losing 2.2% today and the Dow lost almost 2% after suffering from its own round of profit-taking and risk aversion. While participants were booking profits on the equities markets, money-flows were going into Treasuries as we saw the benchmark 10-year yield drop a hefty 12bps. Between the sell-off on Wall St., Treasuries making a bullish move, and with crude falling almost 1%, the EUR/USD stood no chance of sustaining a move and holding above the 1.3600 level during NY trading.
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