Within commodities, we are maintaining our allocation to gold. The resilience of the yellow metal despite higher rates and ETF outflows is remarkable.
Gold continues to offer a protection against geopolitical shocks and currency debasement.
The recent technical breakout seems to indicate further upside ahead.
In Forex, we are keeping our neutral stance on the euro, Swiss franc and GBP against the dollar.
Central banks on both sides of the Atlantic seem to be on a 'wait and see' mode for the time being.
We still believe that the change in monetary policy in Japan – raising rates at the time other central banks are contemplating a cut – could lead to some yen appreciation, hence our positive view on the yen versus dollar.
Charles-Henry Monchau is the chief investment officer at at Bank Syz
