Fundamental Backdrop and Market Sentiment

I wrote on 27th September that the best trades for the week would be:

1. Long of the S&P 500 Index following a daily close above 7803. This did not set up.

2. Short of the EUR/USD currency pair following a daily close below 1.1358. This set up on Tuesday and gave a weekly return of 0.78%.

3. Long of Soybeans. Soybean futures fell by 3.11%.

4. Long of Ethereum. Ethereum was unchanged over the week.

The total loss of 2.33% averages 0.58% per asset.

A summary of last week’s most important data in the market:

1. US Core PCE Price Index – this came in lower than expected, at a month-on-month increase of only 0.2% compared to the expected increase of 0.3%. Dovish for the USD.

2. US Average Hourly Earnings – this came in…