Technical Commentary – ECB Will Defend The Euro. Gold and Oil Reverse Their Losses.

This week…

• The Fed and the ECB spoke and once again both failed to commit to a new round of QE except to say that they will do what is necessary and that the ECB would defend the Euro.

• However, the Germans looked the other way and it was now suggested that the ECB would buy Spanish bonds. The US$ fell, the Euro rose and oil jumped. Then came the unexpected jump in the nonfarm payrolls for July and the stock markets soared, oil leaped, gold reversed, bonds fell and the US$ swooned.

• It was a week of reversals as the stock market, gold and oil all reversed losses from earlier in the week and the US$ and bonds reversed gains that were seen earlier in the week.

D.C.