As mentioned earlier the $US rallied to multi-week highs overnight putting pressure on the US Materials Sector in the process, the group finally closed down -1.2%. Two important points to remember:
- MM only believes the $US’s recovery is temporary and it will ultimately fail around the 94 area.
- We like the reflation play / resources sector over the coming years but believe it has become “too hot” hence we are buyers at lower levels, as opposed to today.
MM is neutral the $US at current levels
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