Barring a bombshell from the Greek austerity press conference, we believe markets will stay relatively quiet ahead of the BoE, ECB and Fridays NFP. In this environment, we will be looking to play the daily ranges. Leaks of the announcement conference have spilled out, with media outlets citing Greek government sources, saying that the government has decided on $6.5 billion in extra austerity… (more…)
This week?s sale of Greek debt has gone unequivocally well; with pension funds and insurance companies alike lapping up the chance to secure 10 year bonds at a mouth-watering 6.35% yield. Compare that with Spain?s similar 5 year offering yesterday which went for 3% and the fact that this yield represents a hefty 295 basis points more than comparable German debt, and it?s clear to see why… (more…)
Markets seem to be in a state of paralysis, unable to find a clear direction this Monday morning. The EURUSD was contained in a tight 100 pip range, while the USDJPY languished right below the Ichimoku daily could cover. Starting this week, the early part of March is filled with events which have the ability to truly shift market direction. This week is packed with macro G10 economic data… (more…)
Markets were quiet until Europe woke up, where we saw a steady unwind of risk. The EURUSD traded down to 1.3490 from 1.3560, while the GBPUSD fell to 1.4860 from 1.4960. While in the mid-term we are short risk right now these pairs are well oversold and we would expect a near term term risk rally. There was really no single catalyst for the move, rather a continuation of yesterday?s… (more…)