On the call today we talk about how the extraordinary payroll number raises risks globally as the Dollar may overshoot to the upside with no other central banks ready to counter the tightening mode we have in the US. Emerging markets trade in sympathy with currencies stretching all time low levels but underlying markets contained and in some cases positive.
Meanwhile commodities should be weaker with the Dollar strength but actually largely holding in today and have shown same resilience in the face of the recent record move in the DXY. We think this continues as they have already priced in slower China, global growth AND the Fed. Gold now to fresh lows through $1175 we would play to $1100.
Simplify your portfolio and play for increasing risk factors as dislocations in the markets remain startling yet markets are still relatively calm. We think volatility is going higher.
Tune into your account and have a great weekend
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