Strong US data resets the narrative across markets

Link: Saxo's Q3 2023 Outlook - AI: The Good, the Bad and the Bubble Link to slide deck: https://bit.ly/439Lyco   - Today we discuss the strong US data yesterday, including a blowout June ADP payrolls growth number and strong June ISM Services survey print. The data blasted yields higher once again at the long end of the US yield curve, a move that markets found unsettling as it represents a tightening of financial conditions. We also discuss the very odd internals of yesterday's US equity market session and whether all corners of the market are "getting" the risk of a narrative reset: that the US economy may be reheating. In FX, we look at why the JPY strengthened, so unusual to see when US treasury yields are surging. In commodities, we discuss the conflicting forces hamstringing the market in a range and the crosswinds hitting gold as well. This and much more in today's pod, which features Peter Garnry on equities, Ole Hansen on commodities and John J. Hardy hosting and on FX. Read daily in-depth market updates from the Saxo Market Call and SaxoStrats Market Strategy Team here. Click here to open an account with Saxo   - Intro and outro music by AShamaluevMusic