This has been a tricky week to trade as it's been a series of U-turns in almost everything. The latest one is in the US dollar as risk trades begin to sag. The commodity currencies have now given up all their gains and are trading flat.
The S&P 500 is only down 8 points but have a look at shares of JPM, which reported today and were initially up 3.5% but are now negative. Given the run-up over the last 10 weeks, that's not a good-looking candle.
As for the dollar, you would think it would be hit harder by the 10 bps drop in 2-year yields but the broader market is having a really hard time trying to understand what's happening in bonds and that's disquieting. There's also a long weekend in the US to deal with and some geopolitical risks high on the radar.
