Another Monday, another percent in the S&P 500. Like Colt .45, the legend of Magic Monday works every time. Tuesday, however, is a different story; although equities are largely unchanged on the day, news that Greek public sector workers are planning to strike in protest of the government’s austerity measures have sent the euro tumbling lower, scotching its nascent recovery. Macro Man has thus far been unable to verify whether Greek civil servants have demanded that the population of Berlin feed them grapes and fan them as they recline on Roman-style couches.

Down Under, meanwhile, the RBA put rates up to 4%, a level that seems almost (gasp) "normal", or, in the parlance of the RBA, "average." The strip is pricing in another 100 bps of tightening over the next year versus today’s 3m bill yields of 4.25%. That’s only slightly more than is priced into the eurodollar strip, even though many punters don’t expect the Fed to move rates over the next year. A break of the uptrend line in IRH1 could render it a nice short against long positions in other markets.

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