The USD focus is on rates being higher and it’s just not mattering like it did earlier this year. The focus on 93.90 and risk for 92.50 seems obvious and whether that correlation matters to stocks, writes Bob Savage Monday.

Knowing how to lose is an essential part of success. If timing is the key for getting into a trade, risk management, or cutting your losses, is the key for getting out.

The overnight mood has been one about losing as the U.S. seems to not be winning the trade war. Paradoxically, neither does China. Anyone exposed to global trade suffered last night as China calls off the trade talks with the US ahead of the tariffs and watching to see further U.S. retaliation for their new reactionary tariffs.

The ability to reflect all of this headline news was further complicated by the lack of markets as both Japan and China are closed today.

This is how losing begins, slowly, then quickly, just like bankruptcy.

The focus this morning is on Europe and its lower equities, higher oil prices thanks to OPEC ignoring Trump’s push for more output and the U.S. dollar (USD) is stable thanks to the FOMC meeting later this week.

Oil at 4-year highs matters – it will push inflation fears and focus on pass through risks along with margin compression. Growth also remains a concern as trade wars erode confidence.

The German IFO was the key economic report overnight and it slipped again, but not as much as feared. The future outlook is still below the current condition, indicating slowing momentum.

The Italian budget debate rages on and its enveloped the fragile coalition leading to a pain trade in BTPs.

The Brexit debate rages on and it’s led to a plan B for UK May – talk of a snap election.

The push for a Canada-style free trade deal is next.

Of course, today in the U.S. brings more about the U.S. debt and its risks for future trouble as the Treasury sells bills and 2-year notes.

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