US Economy

Via Calculated Risk: On Friday at 8:30 AM ET, the BLS will release the employment report for October.

DXY was firm last night: AUD was strong against DMs: And EMs: Gold was stable: Brent too: Base metals fell: Big miners roared again: EM stocks fell: High yield yawned: The US curve flattened again: European yields fell: Stocks held on: There are two things going on here.

DXY was firm last night: So was AUD, largely just tracking a big bounce in the NZD after good jobs data: EM currencies were strong: Gold firm: Brent fell: Base metals just won’t quit: Big miners roared: EM stocks hit new highs: High yield fell: US short end yields jumped.

DXY roared Friday night and the future is up: AUD crashed but rebounded on news that Jerome Powell is now Fed favourite.

DXY has delivered on the promise of its bullish inverse head and shoulders chart.

DXY fell a little last night as it waits for Trump tax rocket juice: But that could not save the AUD which plunged against USD And EUR: And EMs: Gold was soft: Brent firm: Base metals still smokin’ the crack: Big miners not!

Via Dow Jones: President Donald Trump asked Republican senators for a show-of-hands poll on two candidates he is considering to be the next chairman of the Federal Reserve.

Via The Guardian: The Senate has approved a multi-trillion dollar budget that Donald Trump has called a “first step towards massive tax cuts”, a largely symbolic move that sets the stage for Republicans to rewrite the US tax code without a single Democratic vote.

Via Captain Glenn in his new role as hedge fund seer: Former Reserve Bank of Australia governor Glenn Stevens says global investors have become complacent about the risks of a sharp rise in inflation that would have “considerable implications” for financial markets.

DXY came off its highs Friday night: The AUD came off its lows but is weak against EUR now as well.

Moody’s has a nice post today on the role of credit markets in the business cycle: Rate Spike Would Tame the Bulls The US equity market may continue to set new record highs as the VIX index lengthens its stay under an extraordinarily low 10 points.

BofAML on the contest of contests: Contestant #1: Kevin Warsh Kevin Warsh is a lawyer by trade, who is currently a distinguished visiting fellow at the Hoover Institution and lecturer at Stanford.

DXY poured it on last night: AUD is fighting a desperate battle at 78 cents support.

DXY pulled back last night: AUD stabilised versus EMs: But fell against EMs: Gold held: Brent was whacked: Base metals rallied: But not big miners: EM stocks held: High yield is stable: US yields pulled back: European spreads contracted: And US stocks hit more record highs: It’s a pretty normal pullback following Trump tax excitement.

DXY was even Friday night: AUD was firm against DMs: And weak against EMs: Gold firmed: Brent is now too high though part of that is widening spread to WTI on hurricane disruptions: Base metals were mixed: Big Miners too: EM stocks fell.