Short S&P 500 and Long AUDUSD: Top Trade Opportunities

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Short S&P 500 and Long AUDUSD: Top Trade Opportunities
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Heading into the second quarter of 2022, there are a number of high level themes competing for investors’ attention. Get your market update from JohnKicklighter here:

The resiliency of general risk trends, a distinctly hawkish push from the world’s major central banks, rampant inflation and Russia’s assault on Ukraine all carry a serious weight over the bearings of the global markets.

I like to look for market options with diametric outcomes on key events or themes. In the event that speculative appetite actually rises over the coming quarter, the list of explicitly risk-sensitive measures that actually look appealing in technical and fundamental terms is relatively short. One pair that I am looking at through the close of the first quarter is one that technically has a fairly tight forecast for its underlying yield differential.

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