Mexico's Undervalued Equity Market Offers Long-Term Investment Potential 
Goldman Predicts 50% Odds of 10% U.S. Tariff on Copper by Q1 Close 
U.S. Stocks vs. Bonds: Are Diverging Valuations Signaling a Shift? 
Indonesia Surprises Markets with Interest Rate Cut Amid Currency Pressure 
European Stocks Rally on Chinese Growth and Mining Merger Speculation 
UBS Projects Mixed Market Outlook for 2025 Amid Trump Policy Uncertainty 
Gold Prices Fall Amid Rate Jitters; Copper Steady as China Stimulus Eyed 
China’s Growth Faces Structural Challenges Amid Doubts Over Data 
Stock Futures Dip as Investors Await Key Payrolls Data 
2025 Market Outlook: Key January Events to Watch 
Trump’s "Shock and Awe" Agenda: Executive Orders from Day One 
China's Refining Industry Faces Major Shakeup Amid Challenges 
UBS Predicts Potential Fed Rate Cut Amid Strong US Economic Data 
Urban studies: Doing research when every city is different 
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 
S&P 500 Relies on Tech for Growth in Q4 2024, Says Barclays 
Last Friday we initiated a CAD long (vs CHF) on a multitude of tactical rationale. These included a potentially renewed impetus to the tightening cycle following the labor market report (which snapped a 2-month run in data disappointments that had caused a 20bp decline in short-end rates) and a meaningful discount versus short-term fair value models (currently having now narrowed to 0.7% on USDCAD or 0.5-sigma).
In addition, the breakout in oil prices most recently not only translates to CAD upside via the translation into upside to short-term fair value (worth 1.3% on USDCAD for the 16% move in WTI in the past month), but raises the risk that oil prices sustain a move into an area where the positive impact broadens out more substantially into greater energy CAPEX and hence a much stronger cyclical and rate outlook behind CAD. We maintain exposure to this trade.
We encourage CADCHF longs at spot levels 0.7741, stop at 0.7650. Marked at +0.14%. Courtesy: JPM
