Friday saw US equities consolidate as we saw indices close marginally negative with the DJIA finishing down 0.19%, the S&P 500 closed -0.23% while the NASDAQ lost 0.38%. Asian equities bucked the trend slightly thanks to the NIKKEI 225, which posted gains of 0.5% with exporters relishing the weaker JPY and the slight bid in crude prices while Chinas Shanghai Comp gained 0.7%.

In FX, the USD continued its impressive run on Friday as it extended it rally against its peers as we see the USD index trading firmly above 100. The EURUSD has printed new yearly lows while the USDJPY traded above 111.00, with the dollar gaining over 8% against the JPY in the last 10 sessions. This week has seen fx markets consolidate as traders betting against the USD lick their wounds and look to regroup but until we see some reason for the USD to give back its gains, such as a cause to believe that the Fed rate hike will not take place in December, the USD could continue to dominate for the foreseeable future.

In commodities, gold continues to trade around the 1215 level as markets consolidate after the more than 10% drop in the precious metal since we saw the start of risk-on selling ignited after the US elections. Crude oil continues to push higher as various reports from OPEC members show the members to be a step closer to finding an agreement on cutting output. With the tumble in crude prices leading to several billions in revenues lost by oil producers, OPEC is now more than ever looking at the clock in term of stabilizing oil prices, with a touted goal of $55 per barrel. Should they achieve the supply cuts, we will see crude prices do just that while a failure to negotiate will see crude soften.

With risk-on the name of the game since the US election and investors gaining a substantial amount of paper profits, any shocks to the risk attitude will see investors run to cover their positions which could result in an aggressive correction.