Leonardo Fibonacci & Gerolamo Cardano

The old adage about the market doing whatever hurts the most amount of people was true in bonds on Thursday as US bond yields plunged. Does Friday's stabilisation in yields and USDJPY signal the start of anew wave higher? The US week concluded with higher than expected rise in US housing starts and building permits, weaker than expected increase in consumer setiment from the University of Michigan and a higher than expected 3.7% (9-year high) from the survey's 1-year inflation outlook. The latter helped bond yields find some support above 1.54% before regaining the 1.58%. USD ended the week lower across the board, while NZD and GBP retreated late in the week. Below are 3 charts related to oil, each suggesting ongoing pressure, despite this week's USD descent. Oil is considered the next shoe to "rise" in the US dollar's selloff.  Tune in to next week's action as the pre-FOMC blackout period is filled up with more earnings.