Morning Call: Equities pop, yields climb, gold fades
In today's edition of Saxo's Morning Call our experts explore the post-election equity pop, the push higher in US yields, the dollar-yen rebound and why gold has lost its sparkle.
The market got a bit ahead of itself in positioning for further strength in the euro and weakness in the US dollar in Q2. But after the enormous correction and USD rally, we look for the USD to find a top in the second half of the year and to begin heading lower again. The world can’t afford a strong dollar and once the Trump tax and fiscal stimulus fades, the US will have a hard time finding the USD buyers to offset it enormous external imbalances.
Saxo Bank's Quarterly Outlook for Q2 is here, with expert insights and trading themes from our team of strategists. Get your copy here.