Markets didn’t quite react as we feared they might and by the end of US trade had really shrugged off many of the concerns.

Wall Street rallied strongly and all the major indexes put in strong gains. Oil was another that had a bullish sentiment about it closing up more than 1%. While Copper was also stronger finishing the day up 3%.

Forex markets told a similar story, with a risk on feel. The struggling laggers such as the AUD/USD and USD/CAD turned things around nicely, to push back into the recent highs/lows.

Markets are starting to get busy now after a quiet week. The economic data out today will be a bit busier than we have seen to date. Led by the BOJ announcement later today.

The USD Outlook

The DXY is still just above the support level at 94.50. The tariff trade has been a funny one, because for the most part the USD has remained strong throughout what we might consider bad news.

So when yesterday;s news came out, it was hard to know how the Greenback might react and sure enough it didn’t do a lot.

I’m still bullish on the US economy and let’s not forget the FOMC next week with a strong chance of a rate hike.