Risk-correlated trades fell hard yesterday as worries over the US economy reverberated through the market?s psyche. The core driver was the collapse of existing home sales which fell to a startling -27.2% and the June figure was revised down to -7.1%. US 10 yr yields broke the critical 2.50% level, while the 2 yr yields traded to new, all- time lows. Chicago Fed President Evans lamented the US… (more…)
An uncanny tranquility has spread over the Forex Market this morning. There was a feeling leaving the office yesterday that renewed fears of a global double-dip recession and sovereign risks were going to spiral out of control. However, US equity markets managed to close in positive territory while bond yields were mixed. During the Asian session, regional equity market indexes were able to… (more…)
Forex Markets are still peacefully trading in ranges as participant await US GDP and any news from Wyoming. Sentiment is stable with Asian regional indexes marginally higher helped by yesterday?s slight positive surprise in US jobless claims. FX volumes are contained especially within leveraged circles, hinting that retail traders may be sitting this week out due to enormous event risk and heavy… (more…)
Forex traders were welcomed this week by a market filled with noise but little new information to provide any guidance. The Australian election was the main event over the weekend and the result produced a hung parliament since neither party gained the critical number of 76 seats for a majority. The Labour party took 72 seats and the coalition 70. The vast majority of pundits are harping on the… (more…)