Weekly G8 FX Notes — 2021/05/10

G8 Index Performance & Positioning:

Few comments on May seasonal

S&P500 and Dow Jones printed new record highs last week making it seem like the old Sell in May and Go away adage may not hold true this year. Value/growth rotation looks like it has more legs with bigger names looking to catch up with small/mid-caps that have outperformed on the Blue wave presidency. Going forward, US outlook will be fueled by the massive fiscal stimulus, recovering strength of US consumers, and vaccination progress - all of which should benefit household value names and therefore be a threat to the strong USD in May seasonal. One area I will be watching in terms of when we might be able to see sustained USD strength, is when this value rotation may be reaching an inflection point, like it did last March…

Weekly G8 FX notes:

USD Index
EUR index
JPY and CHF Index
GBP Index
CAD Index
AUD Index
NZD Index

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