US Futures Rise as Investors Eye Earnings, Inflation Data, and Wildfire Impacts 
Gold Prices Slide as Rate Cut Prospects Diminish; Copper Gains on China Stimulus Hopes 
Trump’s "Shock and Awe" Agenda: Executive Orders from Day One 
UBS Predicts Potential Fed Rate Cut Amid Strong US Economic Data 
Oil Prices Dip Slightly Amid Focus on Russian Sanctions and U.S. Inflation Data 
JPMorgan Lifts Gold Price Forecast to $6,300 by End-2026 on Strong Central Bank and Investor Demand 
Gold Prices Fall Amid Rate Jitters; Copper Steady as China Stimulus Eyed 
Wall Street Analysts Weigh in on Latest NFP Data 
Bank of America Posts Strong Q4 2024 Results, Shares Rise 
U.S. Stocks vs. Bonds: Are Diverging Valuations Signaling a Shift? 
In EM, keep structural long in ILS vs a 50:50 EUR:USD basket and stay short EURCZK. We are bullish the koruna and expect the currency to trend appreciate over the coming months.
Long ILS vs a 50:50 EUR:USD basket for a target of 3.60, and review point of 3.85. Marked at -2.27%.
Elsewhere, RUB valuations now seem to be cheaper, the bias is to go OW post seasonal current account weakness. In terms of EURRUB and USDRUB, we still see extended recovery potential into decisive T junctions in form of internal 38.2 % retracements at 71.681 (EURRUB) and at 65.217 (USDRUB).
At the start of the week TRY benefitted from a low trade balance deficit and better tourist numbers. The rising number of Russian and Asian tourists, in particular, is bringing more money into the country.
The ratio of copper to oil (Chile’s main export to main import) has risen to the highest level seen at least in last five years. The CLP has rallied but has lagged this terms-of-trade improvement, in our view, and is now trading cheap in our short terms valuation models.
In Brazil, we hold our long BRL position as strong fundamentals and no significant news on the politics front justify our bullish stance on the currency.
Stay short EURCZK forward – sold 26.6883 expiry 27 November 2017. Marked at 2.64%
Long CZK positions are supported by strong macroeconomic fundamentals, a forthcoming policy rate hiking cycle (the first policy rate hike of 20bp is expected in 3Q’17) and cheap valuations (JPM’s BEER and FEER models show CZK REER vs EUR as 7% undervalued on average).
JPM’s strategists also maintain our structural longs in CZK cheap valuations, a large current account surplus, and low inflation.
