Interestng reaction to the NFP

Today's NFP was surprisingly very negative. This implies that the Fed will not raise rates in June. The reaction is that the Yen is up and equities were initially down.

But we can detect a positive cumulative tick. Where is the money coming from? Japanese pension funds should not pile into US assets with the rate differentials plunging and the Yen jumping higher.

If we think logically, it is difficult to go long into the bounce, because the carry trade is dead for now.
Let's see how the market reacts on Monday.



Pascal

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