Well, it just couldn't last could it.
In actual fact last weekend was nothing more than a ceasefire/can kicking/lip service exercise to appease risk markets.
Equities higher and JPY lower - all added to the Santa cheer. Not so fast because this Santa turned into Grinch with a very nasty hangover - the kind of one you get downing tequila shots.
If you look at the demands The US wanted in 90 days along with China's statement something comes to mind. Men are from Mars and women are from Venus.
How to trade this bad boy.
I went long AUDJPY and into the weekend and got lucky. AUDUSD has now failed above 0.7330/60 but this is partly down to GDP. I would still favour the selling of risk rallies but with caution. We are in December and as crazy as it might seem markets just love risk. EURUSD is very complex at the moment so I'm leaving it alone.
When have you bought something you regretted in December only to return it in January ?
Just saying. Watch that risk.