Dark clouds (in the figurative sense, not Japanese candlestick) are clearly forming over risk appetite. Wall Street’s severely underperformed yesterday and Asian equity markets are broadly lower, with our favorite risk barometer, the Shanghai composite, down -2.33%. The Baltic Dry index has closed lower in the last two days. Both the Norges Bank and RBNZ were significantly less hawkish than the… (more…)
US GDP?s inspiring 3.5% annualized pace of growth has reignited risk appetite that just days ago was looking weary and nervous. The effect on equity markets was immediate, as European indices turned positive and US equities surged higher; however FX markets have been far less impulsive in resuming their trademark USD-selling on good data. Certainly, commodity currencies which have been the… (more…)
As Q3 earnings releases begin to wind down and their significance for risk appetite fades, the focus in FX markets returns to economic data ? and despite today?s quiet schedule, we have a number of key issues in the week ahead.
For the US, the most significant will be Thursday?s first reading of Q3 GDP where consensus estimates are calling for a 1.4% expansion QoQ, up from… (more…)
In a day that was truly devoid of drivers, yesterday?s rapid sell off in risk appetite caught the market completely off guard. Just after peaking to the $1060oz, Gold shed nearly $23, while the EURUSD fell -1.3% down to 1.4845. Overall, the DXY gained 1.0% on the day. The trigger for the sell-off is still very much up for debate, with figures pointing to the slump in US equity markets, worries… (more…)