Precious metals, Risk on highs, debt on highs, USD on lows, core CPI 2.7% / BBBill key now & trade 'deals'

Stéphan
Jun 30
4 min read

Markets : shortened U.S week with 4th July celebration, markets all on highs with -3- FED cuts priced in for 2025 already (AND 2 more in 2026) and core U.S inflation still 2.7%, more TACO action likely on trade talks, although Canada playing hard ball with U.S techs, which will be the key for EU too...The USDollar had its worst 1st half of the year since....1973, as foreign investors dumped UST's the most in years, no wonder precious metals are doing super well ! Small Cap Stocks are now underperforming Mega Cap Tech Stocks by the largest margin in history (MAG7, AI etc etc) >> all about the BBBill now and 9th July deadline on trade (more TACo action most likely but beware is some countries follow Canada's stance), note that Sen. Rand Paul still refuses to back budget bill due to added deb >>> implied VOLS on LOWS, now IS the time to purchase a few 'hedging trade', VIX calls, SPX put spreads, USD slightly oversold, beware short-term snap back too possibly, CHF looks overdone but hey.. USDCHF snap back a play for Q3?.. buy few usdcalls 3mos 25delta, just a trade idea #USDCHF
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