Dollar Pressure High, But Event Risk is More Capable Elsewhere
• The Dollar remains in striking distance of an 11.5 year high on a weighted basis, but drivers are lacking
• Risk trends meanwhile are uneven with the surge in Chinese and European shares leaving the S&P 500 behind
• Aussie Dollar and Sterling volatility may prove more trade worthy as UK CPI and Chinese GDP approach
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We've opened the new trading week to fresh anxiety rather than fresh highs for the Dollar and S&P 500. Both benchmarks are hovering just below their respective highs - the currency just off a twelve-and-a-half year peak and the equity measure in a holding pattern below its record. Though we have event risk to rouse these markets, leveraging the necessary drive to forge breakouts is difficult. Generating the friction to carry a trend beyond a short-term technical break is exponentially more complicated. As we track the epic climb of speculative mania in Asia and Europe (fed by QE) while counting down the hours to Friday's dense round of US rate fodder, there are more imminent cues for other market themes. In particular, the Aussie Dollar and Pound face near-term volatility that can translate into technical opportunities. We discuss the big ticket themes and short-term setups in today's Trading Video.
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