As options trading gains popularity via low or zero-commission trading, the effects of this feedback loop are gaining in importance... The feedback loop in a market sell-off is proven to be more pronounced...
The sharp dollar reversal has triggered a furious bout of short covering in Dollar futures, which according to the latest CFTC data has printed the most short in 9 years.
The key economic data releases this week are the ISM manufacturing index on Monday, the ISM non-manufacturing index on Wednesday, and the employment report on Friday.
"Three months to go until the U.S. Presidential election! Surely Congress will want to get something over the line regarding new stimulus in the U.S. driven more by politics than necessarily economics"
"Congress would grant the Federal Reserve an additional tool for providing support. The Fed would then activate the securities and deposit the funds digitally in households’ apps."
The shift suggests China will substitute some imports, including technology, with local supply, and reorient some exports to domestic markets. In other words, global trade is likely to remain sluggish due to Xi’s pivot inward.