NEWS / Foreign Exchange

Rational Exuberance

A few days ago, Chet Currier, editorialist for Bloomberg News, published on Bloomberg.com a certain material under the title 'This Bull Market Is More Rational, Less Exuberant', in regard particularly with stock market developments ongoing in the US.

The bull market may look 'rational' in the US, but not necessarily on the level of global correlations.
The similarity between the Japanese Yen and the Swiss Franc price performances over the latest weeks has been striking. Some of the Yen cross pairs and major European stock market indices are nowadays at a point where they exhibit almost the same graphical price representation. These resemblances are to me rather a sign of exuberance, than anything else.