Stocks cheered on Tuesday in the largest gain in a year but the response remains lukewarm in FX and bonds. The Canadian dollar was the top performer while the Swiss franc lagged. The focus will be on the Aussie in the hours ahead with the CPI report due. Our Premium trades remain AUDUSD, GBPUSD and NZDJPY. A new set of Premium trades shall be issued on Wednesday night.
The S&P 500 has retraced nearly 61.8% of its losses over the past month but USD/JPY has hardly regained 30%. Even after the best day for stocks in 12 months, the dollar failed to make any gains against the yen.