The better than expected Chinese PMI and Australian GDP gave risk appetite a boost and allowed for the accumulation of risk-correlated trades. However, our gut feeling is that the summer risk on/off pattern is still in effect and we suspect the Asian momentum will fade as we get a slew of economic data today. The Asian surprise print help momentarily suspend the market?s obsession with global… (more…)
The rally in risk appetite boosted by strong Chinese and Australian data yesterday was further encouraged after our last article by stronger than expected US ISM numbers. Forex risk correlated currencies, such as the Euro, moved lock-in-step with the data. EURUSD rallied above 1.2800 and the S&P climb above 1080. However, US rates weren?t invited to the party as players remained unsure ? 10… (more…)
Before we get into this week, let?s quickly talk about Jackson Hole. Right now it seems that the Market is just a few steps ahead of policymakers as there is growing feeling that central banks and bankers lack the essential tools needed to control this recovery. The decisions from this small group over the past few months all appear to be knee-jerk reactions ? never intelligent stewardship or… (more…)
With the UK on a long weekend yesterday, Forex traders had a slight pause in what has been a frenzied month. Enjoy it while you can, because September is notorious for being a volatile month and especially in the equity markets. This summer will be remembered (or maybe not) for its schizophrenic trading and a failure to maintain any meaningful directions or themes. This morning there is a… (more…)