Market Update

Japanese 6-months rates making 10-year highs. While still low, this is a symbolic event that could stir up some of the most risky trades. Look for more EM weakness (ISK, ZAR, TRY already falling).

Stocks are not really moving.

US Trade Balance in focus today. Expectation is a deficit $60B, slightly worse than last month, but it would be a confirmation that the downtrend could now be broken (bullish USD).

EURUSD didn’t manage to close below 1.2980 (fake break twice on Monday and overnight).