USD V Bargepole

Market participants are currently doing all they can to distance themselves from the USD. Selling stocks, bonds and the currency. Which has caused a disconnect from the usual correlations. It's very strange to see the AUD strengthening whilst the S&P is going down.

I don't see the situation changing until the US and China come to an amicable agreement.

I do still think it's a tradable environment. Either focusing on USD short as the 'only trade in town'.

Or, keeping your own narrative sharp and simply saying: I think X will be stronger than Y because Z has just happened. And if it's not in accordance with correlations, so be it. I'm still confident by keeping and underlying narrative, a 50% win rate is very achievable.

It's not ideal, I yearn for the days a soft CPI print means a straightforward 'risk on' trade with everything in correlation. But we can only work with what's In front of us, however strange it might seem.

For now, I'm going to see what jobs Michelle has lined up for me in the garden and take advantage of the sun before the rain comes tomorrow.

Coming soon ..weekly review and (I promise) how to take advantage of a trade going to plan.

Wishing you a lovely weekend.