World goes long US

The USD firmed a little overnight:

Commodity currencies mostly did too:

Gold is still just hanging on:

Brent fell:

Base metals are stalled:

Miners fell:

EM stocks rose:

EM and US HY jumped:

US yields broke out but the curve flattened:

European spreads tightened:

And stocks headed for heaven:

The monthly BoAML fundie positioning survey is out and we are all MB now with the USD super popular:

Reflation all the rage:

Still plenty of cash though:

Everyone chasing banks over yield:

And risks all about Europe:

Looks like the reflation trade has a bit more juice in it before some major pullback is due.

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About the author

David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific's leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.