A trade recommendation via ANZ, analysts saying that "risk on' is now supported by:
- The hope that President Trump will bless a strong stimulus bill from the Democrats, reducing the risk of a near-term fiscal cliff.
- Polling and betting markets are pricing-in a blue wave in Washington ... we thought this was the best outcome for global markets, with both stronger growth, and lower geopolitical uncertainty the likely result.
More:
- Uncertainty remains high, so the risk around these events is relatively elevated. However, a number of our indicators suggest that market pricing is not too extended, with conservative growth outcomes still in the price and a strong upside possible should events unfold as the market hopes.
- We are using this opportunity to enter long AUD/JPY at 76.25 (tp: 78:40, sl: 75.50).
