DXY was stable Friday night:

The Australian dollar fell a touch:

Oil and gold both rose:

Metals are off to the races:

Miners were firm:

EM stocks too:

Junk was fine:

Treasuries bid:

Stocks fell again:

The virus is still the story. In Europe it is now declining but has multiple weeks of lockdown to go:

In the US we have months of tightening ahead as cases continue to spread through a too open economy and deaths begin the grisly catch-up:

Plus, fast approaching is a fiscal cliff of immense proportions, from BofA:
• Many pandemic-aid programs in the CARES Act are set to expire at the end of the year without action from Congress.
• The expiration of federal UI programs—PUA and PEUC—alone could be a drag of 1.5pp in 1Q. Cutoff of other provisions will be additional headwinds.
• We expect Congress to pass another package of $500bn-$1tn in early 1Q which should offset the drag and support growth into 2Q.
Some charts. The cliff:
Just as the employment recovery stalls:
And more need the dole:
Let’s cut some other stuff too:
The impact will be big:
But, of course, this comes after:
I am still looking for short-term market weakness to get longer value and cyclicals for the recovery afterwards.
The same dynamic applies to the Australian dollar.