Rallying Without the Help of China

Stocks and currencies rebounded today after the knee-jerk reaction to China’s equity slide. The lack of US data along with a strong performance in oil managed to keep confidence afloat. However, the second consecutive gain in equities is starting to contradict some recent developments. The currency markets have been characterized by severe reversals in early trading that led to predominant dollar weakness. All major pairs show dollar weakness except for the pound and kiwi.