MARKETS CRAVE EUPHORIA

The week started with the news that Marine Le Pen did NOT win the first round of French elections after losing first place to the more conservative Emanuel Macron. You could hear the deafening signs of relief from Europe's elite who will now close ranks on Le Pen to ensure she doesn't win her place at the Elysée Palace after the final round of elections. The usual suspects came out to congratulate Macron (basically for temporarily saving their skins) and slapped each other on the back in typical Masters of the Universe fashion. The euro surged higher like a firework on the euphoric news topping 1.09 against the dollar. In the truly ridiculous times that we live, where good news is good news and bad news is good news, one wonders when and where the tent on this over-inflated circus suddenly comes down. Stock markets are being pumped to yet more all-time highs on any news whatsoever with P/E ratios so distorted that it would make a contortionist confused! Let's move to the ever increasing tensions in the Korean Peninsula now. South Korea and the U.S gave a joint demonstration of their military power involving ground and air troops in a 'test' attack. Not wanting to be outdone, Comical Kim (Jong-Un) was again putting on a strong military show by marching thousands of soldiers past the cameras apparently with toy guns and plastic missiles! Priceless!Back in the good old U.S of A, The Donald came out beating his drum announcing plans for tax cuts across the board to people and businesses. The problem is, there doesn't seem to be a plan at all as nothing different has been revealed since pre-election days. Consequently, the uncertainty surrounding all of this strong talk didn't give the dollar the boost that was originally thought pre-speeches. It's trading lower across the board as.....err..... talks continue to avert an impending government shut-down. That's just great. Remember folks, bad news is good news......nothing to see here, now move along please.Expect cable to test the psychological level of 1.30 next week with EUR/USD still pairing gains on the early week's euphoric news as it sits poised to test 1.10 any day soon. If you're lucky enough to be having a long weekend, then have a truly great one.