Smartkarma Daily Briefs

• Our high conviction USD sell call at DXY 114/113 comprised the AUD, ZAR, Euro, KRW and JPY. Our focus today is the USD/JPY undershooting our 135 target.
• AUD is near our 0.6850 but could stretch to 0.69. USD/ZAR met the 17.10 PT. Euro target remains at 1.0650 just under the 1.07 MT resistance. USD/KRW 1,298 PT met.
• DXY 103 downside target with risk to 102 while aligning the US 10yr yield target of 3.50%/45%. NFP is the swing factor for yield today.

The Chinese Property Weekly focuses on providing updates in the Chinese real-estate sector, including recent regulatory and company developments, top and bottom performers, rating actions, as well as a list of bond maturities in the next 30 days.

• FTX collapsed causing the crypto market to fall into shambles.
• FUD (Fear, uncertainty, and doubt) are spreading like wildfire throughout the industry and people have every right to be scared.
• The fallout of the FTX collapse will be the battle for the soul of crypto. 

• Included in bank earnings is a provision for loan losses.
• In a perfect world, management would know exactly which loans would go bad and how much money they would lose on those loans.
• In reality, estimates are required. Like insurance companies, banks typically apply a statistical model based on the risk rating classification of their loan book plus any specific reserves.