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Summers headline is 'huge risk-on day' - Bill Gross

FXstreet.com (Barcelona) - Bill Gross, Co-Founder of the Pacific Investment Management (PIMCO), sees Summers resignation as candidate for the Fed post as an extremely risk on development for financial markets this Monday.

The assumption is that Yellen, who is currently the Vice-Chairman, will replace Bernanke at the helm of the Fed, which suggest a continuation regime of QE.

Gross shared his thoughts via Twitter: "Summers's exit makes Monday a huge day for curve/risk on trades. Treasury 5/30 curve may steepen by 10. Stocks should do very well."

EUR/JPY shaken out around the 132 handle

The EUR/JPY foreign exchange cross rate is currently trading at 132.27 off recent session highs at 132.40 printed on the back of Euro strength following Larry Summers withdraw from Fed chairmanship race with Tokyo markets closed over holiday.
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Gold catching a bid on weak DXY - resistance looms at 1,358

Gold is rallying on an unwinding of short positions that were tied to a strengthening DXY. That may or may not be a temporary phenomenon based on the data / news flow out of the US this week.
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