The models are broken
The market is trying to get back to the pre-Covid and pre-war times, but that model is broken. A new dawn is here and the financial world needs to adapt.
Steen Jakobsen,
Chief Investment Officer
Head of FX Strategy
Summary: The RBA’s Lowe caved on his former optimism in a speech overnight and we wake up to a crushed Aussie. Elsewhere, the yen also came back overnight, following US Treasury strength and it all feels like a bit of a theme shift toward risk-off.