Instead of clearing the murky water, it seems we are caught in a whirlwind of sentiment.

We know the CHINESE economy will suffer a blow from EVERGRANDE, we also know that PBOC holds enormous reserves to soften the blow. The sentiment is that they will let the real estate giant fail and then deal with consequences as best they can. That should be BEARISH, but seems to be a senset of invincibility in markets that is hard to combat.

FX crosses are mixed. GBP is trading well vs. G3, and HIGH BETA is performing very well.

We are looking for thematic trades that have CONSTRUCTIVE charts.

The USD remains in a range, we do like USDCHF higher and are pitched in that direction, albeit small. We also feel that commodity currencies are probably going to get exhausted soon, but will not be preemptive fading. The charts still point for a USD rally vs all, so we will let them range trade and look for spots there.

We will be patient and let the dust settle a bit after an active Central Bank calendar (FED, BOE, NORGES).

A virtue of trading is knowing when to take a breather and sit on your hands, having said that, we are looking and will continue to do so.

If you have direct questions please email them to us, happy to engage via email.