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FX weekly: Time to bring in Steven Seagal #2
Coo, coo. Coo, coo. The doves are cooing. The combo of a Trump-tweet about his good friend Xi, Fed paving the way for the inauguration of a cutting cycle and Draghi telling markets that QE will restart was all it took to bring back the happy days in markets. There is no country for hawkish men and markets seem to buy (fully) into the CB put, despite new signals that ISM will drop below 50 soon and despite signs that Iran and the US are on the verge of a war. We continue to favour very late-cyclical bets (receive USD rates or buy Treasuries, long EUR/NZD and buy gold). The global dovish repricing has though admittedly ... (full story)