Report
EUR 9.38
For Business Accounts Only
http://track.com/articles/the-morning-track-repricing/
What happens to other markets when you raise the price of oil 10%? We are continuing to find out today – as we start the last month of the year – with repricing exercises ongoing. The largest surprise for some is about rates and the USD reacting more strongly that than to oil – but this didn’t extend today and US equities found no joy either. The ECB and BOJ may find some solace in their deflation battles with this commodities rally. The key question remains - is this the “good†inflation that lifts wages or will they get a lump of coal at Christmas? FX plays a significant role in the story and the PMI reports globally highlight this point. Throw in a healthy mix of political noise – from the Italy vote, Austria vote, G20 deputy meeting and in the UK the talk of paying for Brexit – all that makes it even more difficult for Gilts but better for the GBP as it snaps the 1.2515 55-day resistance and seems on course for 1.28 again with GBP/JPY clawing back a
ll the Brexit pain. This GBP chart maybe the story for other markets to find something beyond oil and US rates. Repricing into December means getting back on trend or finding a new one for 2017 – neither seem obvious until we get more data.
The Morning Track repricing
- The Morning Track – Repricing by Bob Savagehttp://track.com/articles/the-morning-track-repricing/
What happens to other markets when you raise the price of oil 10%? We are continuing to find out today – as we start the last month of the year – with repricing exercises ongoing. The largest surprise for some is about rates and the USD reacting more strongly that than to oil – but this didn’t extend today and US equities found no joy either. The ECB and BOJ may find some solace in their deflation battles with this commodities rally. The key question remains - is this the “good†inflation that lifts wages or will they get a lump of coal at Christmas? FX plays a significant role in the story and the PMI reports globally highlight this point. Throw in a healthy mix of political noise – from the Italy vote, Austria vote, G20 deputy meeting and in the UK the talk of paying for Brexit – all that makes it even more difficult for Gilts but better for the GBP as it snaps the 1.2515 55-day resistance and seems on course for 1.28 again with GBP/JPY clawing back a
ll the Brexit pain. This GBP chart maybe the story for other markets to find something beyond oil and US rates. Repricing into December means getting back on trend or finding a new one for 2017 – neither seem obvious until we get more data.
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Robert Savage
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