Yen crosses are higher today and S&P 500 futures are up 52 points.
It's a sharp turnaround from last week's trade, where risk assets puked. It was the worst week for US stocks since March 2020.
But a long weekend has given people a chance to enjoy the sunshine and reassess the economic backdrop, along with valuations. Everything was tossed out last week and the dip buyers are now wading in.
A flush like last week tends to shake out many of the week hands. I still suspect far too many investment managers are overweight tech and will use a bounce to sell but before that, we need a bounce.
Bear market rallies can be ferocious and it's against the backdrop of the worst start to a year ever.
Shifting it back to FX, there appears to be no let up in USD/JPY selling as the market questions the wisdom of the BOJ's yield curve control program.
Should this bounce in sentiment extend, there will be even more torque in yen crosses, with AUD/JPY and GBP/JPY near the top of the list.
