Don't Forget the Yen

widening yield spreads indicate stronger dollar index, as Ashraf and Santelli preach. The fact that in all this "noise" the past two days, and mindless eur and gbp buying, the fact that the yield on the 10-Yr held is supreme. This cuts through the noise of all the stop-running the mo-mo players have been doing.

Do you agree Jpy sell-off in Asian session later? They don't want to see Jpy strength over there.

Me too. I think this is the trump card Ashraf has over many others. When all the noise of NFP and China fade (which should be shortly), and the mo-mo players get scorched bidding up the trash eur and gbp, and get caught buying gold after a six-day, $85 rally, then people will focus on the spread searching for the reason of the demise of the eur.

Another guy whom I like a lot is Rick Santelli on CNBC. he is a no-nonsense guy who knows his craft, and is NOT afraid to not only question, but laugh at others whom he believes make foolhearty statements. Santelli is always talking yiels and spreads.

BTW, did u see them throw gold a lifeline when it dipped below 1150? $3.5 rally in five minutes, based on...?

Interesting comments regarding usd/jpy in IMT. I believe this pair will be supported (yen sell-off) in the upcoming Asian session.

I am watching the 1150 level on gold closely. It just bounced a bit from there. A break below opens up the gap for filling.

Eur/gbp may have to be bid to support eudover 1.45. If this occurs, what happens to gbp?

Either way, the GBP is toast here.