As much as I like the risk appetite I am seeing, after a couple of months of chop and indecision, it looks like the market is trying to reorganize around a new narrative: Things are looking better.
Whether it’s true or not is actually not the point: We think it’s true. But we’re hesitant. I am a cautious buyer of AUD, CAD, and NZD and the margin for error (in case risk appetite takes a break) is to buy those currencies against the GBP. It’s the gift that keeps on giving.
Takeaways from the video:
- The Dow continues to trend higher
- DAX and Chinese Large Caps are stronger
- Crude and Copper point to more risk appetite
- This could all change after the ECB presser if Draghi doesn’t pull the trigger on stimulus
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