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Will Yields Turn Back at 24-Year High? All Eyes on the Jobs Report

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Breakdown

0:00lesson

Monetary policy expectations spilling into markets

  • Policy expectations moving globally
  • US jobs report upcoming in 24h
  • Bond market relief after 6 days
  • ZB futures showing relief
  • Relief across bond maturities
2:24lesson

Euro showing explosive price action

  • Euro down 9/10en of a percent
  • Former resistance becomes support
  • Euro zone fiscal stress evident
  • France's fiscal issues resurfacing
  • Yield spreads blowing out
4:57lesson

Euro story driving market dynamics

  • Euro outperforming other currencies
  • Gold and silver showing relief
  • Bitcoin attempting to break out
  • Dollar story shifting focus to Fed
  • Jobs report as key inflection point
7:28lesson

Fed policy expectations and probabilities

  • October Fed meeting likely to hold
  • Second hike by December 97.6% chance
  • Third hike no longer fully baked in
  • Economic data showing moderation
  • ISM report showing steady growth
10:05lesson

Economic data and inflation trends

  • ISM report showing strong manufacturing
  • Inflation slowing to Fed's target
  • Atlanta Fed GDP model revised lower
  • Consumer confidence at record low
  • Consumer retrenchment concerns
12:27lesson

Market exposure and position adjustments

  • Euro position cut due to divergence
  • Gold and Aussie/pound weakness echoing euro
  • Canadian dollar not doing much
  • Bitcoin long with call vertical
  • Russell and S&P short through verticals

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