Report
EUR 9.06
For Business Accounts Only
http://track.com/articles/the-morning-track-yo-yos/
Markets are subdued but back to risk-on mood today. The news overnight was about the RBA being on hold, China reserves barely breaking the $3trn line, German industrial production sharply weaker at -3% m/m. Blame the weather, blame the hangovers from the Superbowl, blame Trump – but don’t blame your positions. That maybe the real story of the day as the risk-on and risk-off nature of the markets in 2017 continues like a yo-yo winding around your finger cutting off the blood supply and leaving many squeamish until we get some clarity either from Trump or Yellen. So the USD is back bid, the equity markets in Europe and the US bid and the bond markets offered. Commodities are lower tracking the USD. Growth outlooks are mixed, worries are high but not enough to derail the connection that the lower your currency the higher your stock market except in the US. The world is fickle and not believing in a bigger reflation or even inflation story. The market is obsessed wi
th this risk story unwinding and the chart in FX that highlights the biggest losers Europe and Japan makes clear that something is changing even though markets feel dizzy and stuck like a yo-yo. The 117.50 target in EUR/JPY Is worth watching and it ties nicely to the Friday Abe/Trump meetings.
The Morning Track yo-yos
- The Morning Track – Yo-Yos by Bob Savagehttp://track.com/articles/the-morning-track-yo-yos/
Markets are subdued but back to risk-on mood today. The news overnight was about the RBA being on hold, China reserves barely breaking the $3trn line, German industrial production sharply weaker at -3% m/m. Blame the weather, blame the hangovers from the Superbowl, blame Trump – but don’t blame your positions. That maybe the real story of the day as the risk-on and risk-off nature of the markets in 2017 continues like a yo-yo winding around your finger cutting off the blood supply and leaving many squeamish until we get some clarity either from Trump or Yellen. So the USD is back bid, the equity markets in Europe and the US bid and the bond markets offered. Commodities are lower tracking the USD. Growth outlooks are mixed, worries are high but not enough to derail the connection that the lower your currency the higher your stock market except in the US. The world is fickle and not believing in a bigger reflation or even inflation story. The market is obsessed wi
th this risk story unwinding and the chart in FX that highlights the biggest losers Europe and Japan makes clear that something is changing even though markets feel dizzy and stuck like a yo-yo. The 117.50 target in EUR/JPY Is worth watching and it ties nicely to the Friday Abe/Trump meetings.
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Robert Savage
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