Risk trends put in for yet another bullish thrust through the end of the week to drive EURUSD, USDJPY and NZDUSD to their highest levels in 7, 9 and 15 months respectively. These levels, though, are not as incredible as the momentum that has sustained the drive. Such persistence is remarkable in normal markets, but current conditions are anything but normal. With participation at multi-year lows, volume seen dropping off, fundamental drivers past and speculative positioning at extremes; a natural correction seem almost inevitable. In the weekend video, we discuss the extreme contrast between market positioning and fundamental fair values as well as the proper trading approach for these exceptional times.

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