Something's fishy overnight.... XAU & XAG rallied but AUD, NZD & GBP got sold off. EUR crosses rallied too. So is it risk off and physical commodities were bought up as safe haven (for now)? Reckon if carry trades get dumped > margin call > sell precious metals to meet margin call cycle will start all over again. Be careful with risky assets!
Twitter @tangjas
Despite the EURXXX rally overnight with AUD & NZD lower, carry trades like JPYXXX continued to stay firm which seemed inconsistent in broad based risk off environment. Mkts do not look too stretched for a sharp reversal anyway. On the equity front, US retail investors have not hopped on the bandwagon, so don't think we are in for some major correction yet. However, will stay vigilant. What do you think?
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