The Week Ahead
Volume 61 - Denial - Waiting for the dip
Bonsoir from Cannes,
I hope you all had a lovely weekend and a profitable Monday.
Been a while since a poll…
FX
“My GBP/USD 2H23 target is 1.32…” - this target has approached faster than expected from last Sunday.
I pondered in last week’s post regarding recent USD action … “why pause for one month? What can you learn from a one-month pause? I remain bearish on USD, as I have done all year.” From here, it is a fast trip down to the mid-98 handle for DXY if the USD selling continues… Last week I shared a chart of the 5-year median on DXY, and this is no longer “a long way down” like it was last week. USD a big fl[o]p indeed…
For GBP - with what is in front of me, I can only continue with my view that UK rates will head north of 6%, thus supporting sterling further and lifting cable above my 2H23 target of 1.32.
Single Stock and Index - FOUP, Return of the Meme
Firstly, it is nice to see ON finally trading above 100, which we bought in the low 60s.
Across the board, it appears we are in a stage of denial…