07.30.2021

We are looking at the correlation between the USD and RISK very closely.

EUR vs SPX has broken down

We are also looking at Cross-JPY correlations to risk assets

There seems to be a disconnect in how these correlations have traditionally worked. We sense it as to do with excess liquidity.

FX is becoming idiosyncratic and less dependent on traditional metrics. We have to be aware of this and focus our attention in price action, sentiment and positioning.