Risky assets are once again in fashion’ as yesterday’s US treasury auction went off without a hitch and the US Conference Board consumer confidence jumped unexpectedly to 54.9 vs. 39.2 previously. US equities enjoyed another strong trading day and today both Asian and European indexes are trading higher. Going into yesterdays US trading session, markets optimism had begun to wane on the back of… (more…)
The news monopolizing the financial newswires yesterday was the massive jump and subsequent selloff in U.S Government yields. US10Y jumped 20bps and closed above the important resistance of 3.70%. This could potentially be disastrous for the mortgage market, which is widely seen to be the major to an economic recovery in the U.S; furthermore high govt. yields stunt domestic growth and weighs on… (more…)
With no major economic data today, worries and debate over the US ?s credit outlook and optimism surrounding the Eurozone’s economic data will provide traders with a choppy, directionless trading day. The migration from risk aversion trading to the examination of fundamentals was tested by new missile tests from N. Korea. Local news agency reported that N. Korea successfully tested an underground… (more…)
Yesterday’s Holidays in the UK and US combined with a lack of fresh data has kept FX markets range bound. However, as European markets open we are seeing decent demand for the USD. The EUR/USD slipped through the 1.3900 level and the GBPUSD dropped below 1.5800. Traders are selling out of KRW after a 20% appreciation against the USD on the back of its neighbor?s hawkish activities. We expect a… (more…)