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OUR RESEARCH

On this page, you’ll find synopses of our latest monthly reports. Each provides in-depth analysis of recent global macro events and their impacts, with clearly highlighted associated trade ideas. Exclusive JDI Research charts always complement our analysis, supporting you in trading with conviction.

Who is the real election winner?
... Musk or the US economy?

Juliette Declerq

18th November 2024

Who is the real election winner_1.png

A comprehensive analysis of the post-election likely macro backdrop and ramifications to markets.

Beware, the level of uncertainty is high, but I trust that the report will help you make the right investment decisions as we get increasing clarity on the political path ahead.

I will certainly continue updating you along the way. 


1. Everyone wants economic growth...
... But how much will they pay for it?

2.  Expect an immigration crackdown...
... With whiplash for wages and final demand

3.  Building a new kind of wall around the US...
... Are tariffs a key bargaining chip or a foolish bluff?

4.  Tax cuts and deregulations...
... Political promises hit the hard truths of reality

5.  Curbing the Fed's independence...
... and risk returning to the Dark Age of financial repression?

6.  Markets have caught Musk mania...
... But what is the prince of productivity really up to?

Election circus vs economic cycle …
... There is only one winner

Juliette Declerq

24th October 2024

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Extract of themes and topics covered and analysed in our October report:

 

1. Your usual dead-cat bounce, or a statistical miracle ...
... Has the US labour market really turned a corner?

2.  Consumer to the rescue ...
... But how long can income and spending prop up the economy?

Too little too late, or better late than never …
... The Fed is dancing with disaster

Juliette Declerq

12th September 2024

Too little too late, or better late than never_1.png

Extract of themes and topics covered and analysed in our September report:

 

1. Was US exceptionalism just a mirage?
... Recession alarm bells are clanging

2.  25bp or 50p on September 18th?
... FOMC members may need to smell fear to stop procrastinating

3. So what about outside the US?
... Recession bells are clanging there, too

From party poppers to cycle stoppers ...

... Take shelter as the US stutters

Juliette Declerq

10 July 2024

From party poppers to cycle stoppers ._e

Extract of themes and topics covered and analysed in our July report:

 

1. NFProblems: From a healthy rebalancing ...
... To more sinister late-cycle behaviour

2. "Don't short a dull market" ...
... But shield in TIPS until the storm passes

Between a rock and a hard place ...

Juliette Declerq

4 April 2024

joining the dots .jpeg

… Have the Fed creeps chosen the least painful mandate?

​1. The Fed's dovish stance ...
... Risks its inflation credibility to extend the business cycle

2. Now on high alert for a cyclical inflection ...
... Which will see the Fed compromise its values

Top pickers beware ...

Juliette Declerq

29 February 2024

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… The bears are crying wolf

1. The emergence of a recession-proof asset class
... Reshuffles the cards of the normal path to recession

2. Global disinflation is dying
... Right when growth is reviving

Dormant or dodo?

Juliette Declerq

26 January 2024

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… Inflation is not extinct just yet.

1. Inflation: Dead or dormant?
... A deep dive into the Fed's reaction function

2. The Euro area recovers but remains a laggard
... Yet, the Fed will likely beat the ECB to the punch.

3. The Bank of England's credibility is the most at risk
... Rates are not restrictive, and is it even targeting 2%?

JDI Research 2024 Outlook

Juliette Declerq

19 December 2023

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… 

Rates take five, markets revive ...

Juliette Declerq

20 November 2023

rates take five .png

… We can hit snooze on that hard landing.

1. Inflation vanishing act to reawaken the European consumer?
... With a 6-month lag to the US real income sweet spot

2. US: Beyond its economic sweet spot
... A sour aftertaste is the way off: Expect a slow landing 

Still Healing...

Juliette Declerq

13 October 2023

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… A guide to the unending “pre-recessionary” economy

The agelong ascent to the summit...

Juliette Declerq

14 September 2023

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… Are restrictive rates finally in reach?

1. Is the Fed's terminal rate finally in sight?
... What will break the economy?

2. If the housing market does not trigger a recession...
... Surely the labour market will?

3. A second inflation wave in the offing?
... Soft landing is now off the cards

What landing?

Juliette Declerq

10 August 2023

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Perhaps the recession is already in the rear-view mirror…

1. "Immaculate" disinflation: An obituary
... Fading base effects, stalling goods disinflation and stubborn services inflation

2. Soft landing? What landing?
... Perhaps the recession is already in the rear-view mirror

3. Primed and ready for a reset...
...Will it be the Fitch downgrade or the BoJ lighting the term-premia powder keg?

4. The UK epitomizes the world's inflation problem
... Markets are way too complacent with term premia there

All about wages...

Juliette Declerq

7 July 2023

All about wages .jpeg

… with wildly divergent trends from UK to Japan

1. Immaculate headline disinflation
..Just as I expected

2. Disinflation. Act1, Scene2: Pure pleasure
... Stabilising prices and persistent wage gains; Central Banks have achieved the paradoxical feat of stimulating demand with higher rates

3. Disinflation. Act 2, Scene 1: Gloom
... Just as we celebrate the Fed hitting the inflation target, a recession will start

The AI rat race has begun...

Juliette Declerq

6 June 2023

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… Here’s how investors can win it.

The benign Fed pivot is bygone

Juliette Declerq

5 May 2023

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… Buckle up for a nasty Fed descent

A carry trade going wrong...

Juliette Declerq

31 March 2023

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… the Fed swaps a banking heart attack for profitability cancer, but a credit crunch looms

Immaculate or Inaccurate?

Juliette Declerq

28 February 2023

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… Stay alert to the baffling macro transition between nominal and real growth – it will offer trading opportunities

Happy real income gains!

Juliette Declerq

23 January 2023

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… Stay alert to the baffling macro transition between nominal and real growth – it will offer trading opportunities

2023: What to watch to gain macro conviction?

Juliette Declerq

12 December 2022

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… What are the main risks to our outlook?

The double dream of delight ...

Juliette Declerq

11 November 2022

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… Pricing two pivots into a 2023 soft landing

The USD black hole ...

Juliette Declerq

9 October 2022

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… The energy war is raging with perilous macro ramifications

Far from the madding crowd’s ignoble strife...

Juliette Declerq

8 September 2022

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… A soft landing stirs

The Bear With Another Bite ...

Juliette Declerq

25 July 2022

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… Watch out Goldilocks!

Summer Scorcher: Will a Hawkish Climax Cause a Heatstroke...

Juliette Declerq

30 June 2022

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… Or something more permanent?

Patience is bitter (and boring!), but its fruit is sweet...

Juliette Declerq

31 May 2022

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… Shall we give macro a chance to rebalance Covid distortions?

Putin stirs up a macro storm...

Juliette Declerq

28 April 2022

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… Is a global recession avoidable?

A fame, bello et peste, libera nos Domine:

Juliette Declerq

26 March 2022

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“From famine, war and plague, deliver us o Lord”

The power of nominal illusion

Juliette Declerq

15 February 2022

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Yellen’s 1996 “greasing-the-wheel” observation makes perfect sense now!

Biden’s experiment with socialism...

Juliette Declerq

18 January 2022

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Is there a happy ending?

Juliette’s crystal ball: 2022 in charts

Juliette Declerq

10 December 2021

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...

From famine to unwanted feast?

Juliette Declerq

12 November 2021

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A 2022 preview…

The end is not yet nigh...

Juliette Declerq

10 October 2021

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… This cycle has more to run (for now!)

Stagflation?

Juliette Declerq

6 September 2021

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Get over it by asking for a pay rise…

Markets may have swallowed all the good news they can...

Juliette Declerq

12 July 2021

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Time for a reset?

“We need to make sure we don’t repeat some of the errors we doubtless made”

Juliette Declerq

14 June 2021

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UK PM Johnson on 11th June 2021 at G7

Reflation or stagflation?...

Juliette Declerq

12 May 2021

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… Is a monster lurking in the wake of the pandemic?

The law of unintended consequences ...

Juliette Declerq

12 April 2021

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… or how macro trends led to a revolution of the financial world and the emergence of crypto finance.

The Tech sector loses its crown ...

Juliette Declerq

11 March 2021

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… but is it the end of the Growth sector Monarchy?

Climbing a wall of worries, part II...

Juliette Declerq

11 February 2021

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Why neither Europe nor China truly threatens the global reflation outlook

2020 reflation tilt: flash in the pan or fully fuelled fire?

Juliette Declerq

15 January 2021

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...

The hawks are gathering ... and hunting in a pack

Juliette Declerq

26 September 2018

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Use the Fed’s hawkish stance tonight to sell US$ .....

EM, no resolution before capitulation

Juliette Declerq

6 September 2018

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“How did you go bankrupt?” Bill asked.
“Two ways,” Mike said. “Gradually and then suddenly.”
The Sun Also Rises. Ernest Hemingway 1926.

While the markets are away, the Central Banks will play

Juliette Declerq

9 August 2018

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A paradigm shift towards slower growth and more hawkish monetary policy-making…

China bucks the trend with increased policy activism...

Enough water left in lake Powell to cool the US economy?

Juliette Declerq

6 July 2018

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As liquidity dries up and a global slowdown ensues, EM remain most vulnerable…...

“What if” – will Trump be re-elected?

Juliette Declerq

13 June 2018

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Will our hero deliver higher wages? How can the Fed help?...

Market forces awakening in Europe?

Juliette Declerq

29 May 2018

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It would be an error of judgment for the ECB to stand in the way......

“Toto, I’ve a feeling we’re not in Kansas anymore...”

Juliette Declerq

30 April 2018

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How long can the fake economy resist?

Juliette Declerq

30 March 2018

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Michigan: “Households in top 1/3 income tier (the ones spending and owning stocks ...) cited significantly

greater concerns with government economic policy”...

Trump's Trade War -- or just an FX Wolf in sheep's clothing?

Juliette Declerq

15 March 2018

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First punch them in the face... then negotiate a weak US$...

Powell’s Fed in March: in like a lion and out like a lamb?

Juliette Declerq

27 February 2018

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Is there really a choice?...

2018 Black Monday: Investment Opportunity?

Juliette Declerq

6 February 2018

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The "Big Short Vol" is finally taking its toll, beware a prolonged equity sell-off as it could become self-fulfilling......

2018: the year of the consumer...

Juliette Declerq

23 January 2018

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Finally pricing out the post-GFC trauma?...

Sorry Donald, it’s not you: it’s all about the US$...

Juliette Declerq

12 January 2018

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...

Fed hiking cycle: How much is too much?

Juliette Declerq

5 December 2017

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Stay on front-end curve alert!...

A dangerous time to be complacent about the Fed’s shakeout

Juliette Declerq

21 November 2017

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Success breeds complacency. Complacency breeds failure....

Animal spirits – Some stirring, some hibernating...

Juliette Declerq

4 November 2017

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Watch leverage indicators like a hawk...

Sintra's spirit lives on...

Juliette Declerq

27 September 2017

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Until inflation expectations start plunging......

Harvey: will the US economy break like the oak or bend like the reed?

Juliette Declerq

5 September 2017

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Washington decides...

The macro case for a weaker USD remains compelling

Juliette Declerq

10 August 2017

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Don’t risk missing the 2nd part of JDI’s 2017 best trade: Long EUR and short USD......

Is the 2% target a holy grail?

Juliette Declerq

26 July 2017

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Or an accident of history......

Simmering in Sintra

Juliette Declerq

6 July 2017

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...Is not a dramatic departure from decades of monetary policy setting...

The safe-haven investment may not be where you think it is...

Juliette Declerq

15 June 2017

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Inclusive capitalism “is about delivering a basic social contract comprised of relative equality of outcomes; equality of opportunity; and fairness across generations”, Mark Carney, BoE....

Contrarian view: The yield bottom may still be ahead of us...

Juliette Declerq

30 May 2017

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The fiscal stimulus considered by Trump’s administration will not deliver the productivity shock necessary to allow the US to snap out of the growth purgatory...

A risk-free world?

Juliette Declerq

10 May 2017

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Keeping my fingers crossed that the above title marks an inflexion point in volatility!...

Contrarian view: The yield bottom may still be ahead of us...

Juliette Declerq

30 May 2017

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The fiscal stimulus considered by Trump’s administration will not deliver the productivity shock necessary to allow the US to snap out of the growth purgatory...

2017 second best trade: Long EUR? (After long SX5E)

Juliette Declerq

26 April 2017

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If voting could change anything, it would have been forbidden a long time ago (Coluche, a late French humorist who had great political ambitions...)...

With a lack of progress on fiscal stimulus, Trump decides to take the helm of the Fed?

Juliette Declerq

13 April 2017

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Back to growth purgatory......

Red string of fate ties the US to China

Juliette Declerq

27 March 2017

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Is the Fed truly dovish?...

Herd instinct at highs following Trump’s election

Juliette Declerq

10 March 2017

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But growth and reflation may hit a wall in Q2......

My weaker USD call has been received with suspicion

Juliette Declerq

22 February 2017

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This report delves into the reasons to sell USD with conviction......

The USD should stay on its knees short-term

Juliette Declerq

7 February 2017

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Running out of reasons to avoid Emerging Markets......

Trump trade: Buy the election, sell the inauguration?

Juliette Declerq

24 January 2017

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Sounds "great" but it is much more complicated ......

Long live the American Dream

Juliette Declerq

12 January 2017

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Optimism – more than any policy announcements – is what will revive the macroeconomic cycle...

How hot would you like your economy ?

Juliette Declerq

14 December 2016

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The high pressure economy has never deliberately been experimented, how far is the Fed really willing to go ?...

2017 best trade: Long European equities?

Juliette Declerq

6 December 2016

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Being bullish European stocks does not require to be bullish the Euro project......

The super bullish scenario is unfolding

Juliette Declerq

23 November 2016

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Little did we know Trump was the one who would be CO-operating with the BoJ ......

"Trump will get the job done" ... Will he?

Juliette Declerq

14 November 2016

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Will he?...

Reflation or Recession ?

Juliette Declerq

9 November 2016

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All eyes are on the beneficial effects of a commodity bounce but the effective tax on the consumer may bite ......

A snapshot of the US economy

Juliette Declerq

19 October 2016

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Is the glass half full or half empty?...

The end of QE... But not the end of the world...

Juliette Declerq

10 October 2016

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“Governments know that the ECB stimulus will not be forever.” (Draghi)...

A small step for markets but a giant leap for the monetary world

Juliette Declerq

26 September 2016

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Stay constructive on risk despite the BoJ-induced confusion ......

The end of QE... But not the end of the world...

Juliette Declerq

10 October 2016

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“Governments know that the ECB stimulus will not be forever.” (Draghi)...

Lost in translation...

Juliette Declerq

19 September 2016

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The steepenening temptation returns & QE gets globally priced out...

US economy on the edge?

Juliette Declerq

5 September 2016

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Don't push it......

Should we fear Jackson Hole

Juliette Declerq

22 August 2016

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Far from explicitly adopting "optimum control" the Fed's reaction function remains one of "Stop and Go". It is soon time for Go, once again......

Central Banks guarantee a prolongation of the status quo …

Juliette Declerq

17 August 2016

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Expect the liquidity wave to continue to trickle into all asset classes including Emerging Markets (high yielders favoured over the Asian low yielders)...

No paradigm shift toward reflation …

But deflationary tail risks have abated

Juliette Declerq

25 July 2016

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In the last report on July 5th, I discussed at length the possibility of Central Banks passing the baton to the Finance Ministries as a main threat to my positive view on long end fixed income at a time when it had largely become consensus......

Central Banks are NOT helping ...

Juliette Declerq

22 June 2016

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Secular stagnation is settling in but becoming consensus ......

Seeing the wood for the trees ...

Juliette Declerq

22 June 2016

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Let us all be clear, I have no crystal ball and although I do believe that remain will be the outcome of the referendum; it is also what 90% portfolio managers I speak to believe, which really puts us in a bit of a pickle as to the best way to strategize and monetise a view over the event....

Too early to talk about recession, but high time we started talking about Fed easing …

Juliette Declerq

14 June 2016

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The long bond has continued to be the A trade, over the past week with the USD still caught between flight to safety flows and a less promising domestic macroeconomic backdrop......

It pays to take risk ... re-entering short USD

Juliette Declerq

6 June 2016

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My view has been more neutral on the USD recently after a successful foray into longs (closed after the hawkish fed minutes) and I have been thinking long and hard about it today. I want to re-enter short USD and decided to pick CAD ......

A tug of war between the medium term and short term outlook …

Juliette Declerq

3 June 2016

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Position for an extended purgatory time as the mediocre growth backdrop could last an eternity ......

Back to the future … or not?

Juliette Declerq

26 May 2016

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As opposed to Dec 2015, the concerted Q1 monetary stimulus and synchronized mini credit cycles offer the ideal window of opportunity for a Fed hike - Risk should remain supported into the June or July hike....

Not much in the way of further USD gains ...

Juliette Declerq

16 May 2016

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It is tempting to take profit on long USD initiated on the last piece following a great run but the Fed is not likely to show its dovish hand again in the short-term, which means that the trade still has legs for reasons we expose in today's report......

Calling the end of the USD countertrend

Juliette Declerq

5 May 2016

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I took profit in all USD short versus risk-on FX position last Friday on a view that all my long term price targets had been hit in EM FX and that EUR and JPY strength would cause a VAR shock. I think it is fair to say that this VAR shock has happened. In the process, USD hit a cyclical low before storming back on Tuesday and marking impressive reversal signals (see chart above). A clear inflection point (it is no surprise that it was on the same day die-hard USD bulls started to soften their stance and on the day the controversial Shanghai accord was finally confirmed as part of the new treasury FX report) that most likely marks the end of the 2016 USD bear trend theme that I have been riding successfully since January....

How long can the China “drug high” last?

Juliette Declerq

28 April 2016

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With the perception that China's long awaited and much analyzed economic disaster is still in the making, it has been difficult to embrace fully the market implications of the current debtfueled growth bounce....

US real yields and the resulting global liquidity drive risk

Juliette Declerq

18 April 2016

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Global assets have danced over the past 18months to the rhythm of the perceived tail risks around the 2 largest global growth engine: China and the US...

A Central Bank regime change?

Juliette Declerq

11 April 2016

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The Fed is the only reflationary game left in town before the BoJ and ECB go to the next stage, but wouldn’t you rather have the Fed have your back than the BoJ and ECB ?...

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