S&P 500, NFPs, Dollar, USDJPY and AUDUSD Talking Points:
- The start of the new month and quarter may have helped carry the S&P 500 to a sixth straight advance and yet another record high
- With NFPs ahead, the Dollar has also found some modest charge – perhaps through IMF and CBO projections – but can breaks like AUDUSD and USDJPY run?
- Anticipation for the payrolls is curbing conviction, but what can this high profile event risk spur with the market fully expecting a quick liquidity drain into a holiday weekend?
Risk Appetite Continues to Climb Despite Liquidity Wall
The benchmark S&P 500 may not be moving quickly, but it is moving remarkable consistency. Despite the anticipation for the Friday US payrolls release and then an extended holiday weekend for the US – two enormous distortions for an already deflated liquidity backdrop – US indices as a measure…