A Rocky Start to May, or Is It An Opportunity?

ldquo;Sell in May and go away” has taken on a whole new meaning after the last few days. Major markets appear to have been uniformly caught excessively long of risk assets (stocks, commodities, and metals) and short USD, which we think was the primary driver of the past week’s declines.

GBP/USD’s Short-term Range Presents Scalping Opportunity

The GBP/USD erased the majority of its post PMI manufacturing gains as support swung in the dollar’s favor following a robust private employment report from ADP.

EUR/USD’s Lack of Direction Presents Scalping Opportunity

The EUR/USD has regained its footing as the overnight dollar rally has started to lose steam. The greenback was tracking higher on the back of an improved outlook for U.S. growth following a slew of strong fundamental releases to end the year.

USD/JPY’s Quiets Ahead of FOMC Minutes Providing Scalping Opportunity

The USD/JPY has been tracking higher on an improved outlook for the U.S. economy which was further supported by an unexpected 0.7% increase in November factory orders.