Some good moves on the first trading day of the month leave us optimistic that volatility and the opportunities that it brings are back. We look at the dominant themes in the market at the moment. On Tuesday, the trio of EUR, CHF and USD far outpaced the rest of the market while finishing relatively unchanged against each other. Our Premium subscribers received an alert prior to Today's NZ dairy auction, whose fresh decline in price fueled our Premium NZD shorts against CAD, JPY and AUD. Our Premium GBPUSD short is more than 100 pips in the green. See charts & trades details in the Premium Insights
Theme 1: US economic recovery and coming rate hikes
This is by far the dominant theme and the burgeoning USD bull market is the result. On Tuesday, the ISM manufacturing index rose to a 10-year high at 59.0 versus 57.0 expected. In many ways it's truly astounding that the Fed is still at 0% and printing $25 billion per month.