A wall of worry about the Chinese economy struck risk assets on Tuesday. For the second day in a row the Australian dollar was the laggard and the yen led in the classic risk-off trade. Up later, Japan releases CPGI data and consumer confidence while Australia posts home loan data. In today's Premium Insights, we start off the week refocusing on CAD and GBP for different reasons; the CAD for further bearishness following last week's release of disappointing Canada jobs figures and the lack of GBP focus, especially ahead of this month's release of the UK Budget. See our new GBPUSD trade and 3 charts below. Existing trades are in EURUSD, GBPUSD, USDJPY, AUDUSD, USDCAD, AUDCAD and AUDNZD.
The intricacies of intermarket trading were on display Tuesday as a breakdown in copper prices spilled over to broader markets. Prices broke a double bottom at $300 from 2011 and 2013, setting off a wave of selling in risk assets.