US Inflation Stalls in September
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- October 10, 2024
There are further signs in currencies that risk trading is facing fatigue and there is growing signs a short period of volatility could appear to bring about a strategic risk off trade position for the final four weeks of the year. In this kind of atmosphere, the most common trade destination is USD/JPY and this
READ MOREVolatility remains below historical norms, however, the risk rally over the past 3 months appears to be losing stream suggesting volatility should increase and that a tactical risk correction over the last four to five weeks of the year is on. Medium-term (six months or so) this should be seen as a buying opportunity
READ MOREFirst and foremost, risk currencies have over the past two months, been a very positive long trade as DXY and macroeconomic risks unwounded. However, over the past week several events negate the upside movements these being; First, central bank commentary specifically the RBNZ and RBA on local currency appreciation and what it might do to
READ MOREThe risk-on rally of the past month continues to rage ahead, equities in the US are touching extreme overbought levels, but markets have not crossed levels that signal ‘complacent’ however, they are edging closer. One indicator we are watching closely is the relationship between implied and realised volatility. Implied volatility tends to follow realised
READ MOREThe positive risks building in risk currencies has taken a further step forward this week as the Federal Reserve stepped out of the market for the remainder of 2019. Chairman Powell stated that there would be no rate hikes to the Federal Funds rate until inflation moved ‘significantly’ thus upside risk in the USD
READ MOREOver the past 4 months, the AUD has consistently been at the bottom end of the G10 currencies. This slide has been driven by the market racing to pricing the next wave in the RBA’s easing cycle. The sell-off has been justified as 3 cuts in 5 months and a spread between the US
READ MOREOver the past 5 weeks, all GBP movements have been based on Brexit developments. The rejection of snap elections, ‘hard’ Brexit risk and the null and void’ declaration of prorogation of Parliament have created a ‘strengthening’ scenario in the GBP as ‘perceived risks’ have diminished. However, Brexit is anything but a ‘diminishing’ risk, a hard
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