High Beta Currencies Follow Equity Markets Lower

Despite a meager data schedule, the FX markets have experienced relatively large moves over the course of the day as the unwind of positions ahead of year end were exaggerated by thin liquidity conditions. Equities are sharply lower across Europe and Latin America, and even gold has sold-off markedly from…

Weekly Focus: Squaring Positions

At 0.69% the 2-year US bond yield is only 5bp from the low point during the crisis reached a year ago. 3-Month t-bill rates are again trading around 0%. Mainly two factors are behind this development. First of all, investors and banks are most likely reducing risk towards year-end putting…

Weekly Market Commentary

Stock indices should drift through to year-end, but not collapse. FX will continue to consolidate, as should most commodities, with a tendency for the Yen to strengthen slightly and for the US dollar to weaken medium term. Longer-dated Treasury yields will move lower as investors realise that ultra-low official target…