Talking Points:

• A liquidity drain effectively stalled a building risk aversion theme, but this tide will inevitably turn

• Risk trends will undoubtedly supply the medium-term trend, but near-term we focus on monetary policy

• Concern and data will build on US, UK, Eurozone, Japanese, Aussie and Kiwi rate expectations this week

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What could have come of the recent swell in risk aversion had the holiday liquidity drain not been there to curb the tide? We may not have to wonder too much longer. The backdrop for risk trends is change from a fundamental technical and underlying structure perspective. Traders should keep tabs and have a strategy for this medium-term change; but in the meantime, we must focus on the active opportunities ahead of us. Monetary policy expectations (rate hikes to stimulus) are actively engaging the markets. Open-ended fear to key event risk promise to shape speculation around the dollar, euro, pound, yen, Aussie and Kiwi dollars. We look at the big picture and the individual opportunities in the Weekend Strategy Video.

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