Free Trial

No let up - While equities remain red,........>

FOREX
FOREX: No let up
- While equities remain red, currency markets continue to pursue their risk-off
path, resulting in further strength for haven FX and further weakness for high
beta currencies. The was most evident, once again, in AUD, which struck new
cycle and multi-year lows. The moves in spot has kept AUD vols elevated, helping
to pressure front-end risk reversals to the lowest level since May last year.
Equity markets are failing to lend a hand, with a number of European indices
today entering correction territory (albeit briefly).
- GBP was an outlier, retreating sharply after Tuesday's outperformance as
reports dampened expectations of imminent fiscal stimulus from the government.
Instead, it's expected the new Chancellor will stagger spending plans across
three years, rather than front-loading a package this March. The week's lows
remain first support at $1.2887.
- The US data drought ends Thursday, with Q4S GDP, weekly jobless claims and
pending home sales. The speakers slate is particularly busy, with ECB's Lagarde,
Schnabel, Lane, BoE's Cunliffe and Fed's Evans and Mester among those due.

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.