Market Update

The USD strengthened on Friday due to the strong Existing Home Sales, but the trend is still lower – watch the New Home Sales Today. We still think that the dovish tone from the Fed will weigh more, hence a lower USD. Big data releases this week (GDP, Durables, PCE).

BoJ minutes showed an 8-1 vote for an increase, based on a 1-2 year outlook. Some pressure on the underlying inflation is expected.

Post FOMC gains in stocks were retained going into the weekend. We look for a re-test of pre-correction highs.