Nomura Research notes that the key upcoming test for the risk environment and for the 'Trumpflation trade will be the House vote on the American Health Care Act on Thursday.
In this regard, Nomura argues that failure to pass the bill could lead to a bout of further risk aversion.
On the FX front, Nomura analysis shows that 'the commodity bloc (AUD, NZD and CAD) remains the most sensitive to swings in US equities, while EUR, JPY and CHF outperform in a risk-off environment. '
As such, Nomura holds a cautious view on AUD, NZD, CAD, particularly relative to EUR, JPY and CHF.
Source: Nomura Securities ResearchOriginal Article
