Financial markets continued to benefit from easing political tensions in Italy after Luigi Di Maio, leader of the 5-Star Movement, said he was ready to go back on his decision to pick economist Paolo Savona for finance minister. Nevertheless, he will stick to Giuseppe Conte for prime minister...
Global risk aversion triggered by political risk mounting in Italy hit crude oil prices hard. Following Friday massive selloff in crude as mixed message from OPEC seem to suggest production cuts might not last...
The FX market continues to be driven by the Italian and Spanish political developments; however, the risk-off sentiment has eased somewhat as investors take a step back to re-evaluate the situation. EUR/USD is up 0.50% this morning as it climbed back towards 1.16 after having reached 1...
With participants on the long weekend, liquidity in the FX markets remains low. Hence volatile news flow continues to drive pricing. In reaction to signs that the US-North Korea summit would move forward Asian currency gained across the board...
The market greeted Sergio Mattarella’s decision to reject euro-sceptic Paolo Savona as Finance Minister. After falling as much as 0.65% last Friday, the single currency bounced back on Monday morning and reached 1.1728, up 0.55% on the session...
The US Federal Open Market Committee 12-13 June meeting will be critical. Not only will there be a decision on policy strategy, but Summary of Economic Projections and a press conference by Fed Chair Powell...
Volatility in EM FX continues to fuel speculation of a wider risk unwind. This time its events in Turkey, which are driving traders into safe-haven trades...
JPY continues to gain on risk aversion trading. UISDJPY has fallen sharply to 109.90 from 110.95 on persistence selling pressure...
The greenback rose across the board on Wednesday morning amid general increase in nervousness to Italy’s future government. The dollar index surged to 93.975, up 0.35% on the day, as the euro dipped to 1.1711 (-0.57%), the pound sterling slid to 1.3385 (-0.35%), while the loonie gave up 0...
We expect oil prices to firm around $70-80 per barrel, but a geopolitical shock could send prices soaring even higher. Their march upward has been driven by global demand (China oil imports at all-time high), disruption in Nigeria and expectations of sanctions on supply from Iran and Venezuela...
The single currency had a rough morning on Tuesday as it kept grinding lower during the Asian session and hit 1.1757 against the greenback...
Unlike what we might think, the energy-related Canadian dollar boost from continued crude oil prices rise is lively...
USD continued to improve against the JPY as US yields rose across the curve. With the macro backdrop of us-china trade optomism and improved outlook for the US economy yield o 10 year treasuries hit 3.128%, marking a 7 year high...
Amid increasing geopolitical tensions in the Middle East (incl. UN talks), adding up with North Korean threatening of summit cancellation, the US government is strongly solicited in the last few weeks...
The Japanese yen took a dive yesterday as USD/JPY climbed to 110.45, the highest level since February 2nd. Most of the move could be explained by a renewed sell-off in US Treasury, which sent the 10-year yield to 3.09% yesterday that fuelled another dollar rally...
Sterling has been dragged down by the changing BoE rhetoric and repricing of the timing tightening cycle. Since February weak economic data ended the all-but-sure May rate hike. Yet, expectations of monetary policy strategy has become worryingly short sighted, data dependent in our view...
The US dollar reversed losses yesterday amid heightening geopolitical tensions in the Middle East. Indeed, after the Syrian situation and the Iran nuclear deal, now we got the Gaza killings following the official opening of the US embassy in Jerusalem. After falling as low as 92...
The New Zealand dollar was one of the few G10 currencies to lose ground against the greenback as speculators scaled down bullish bets...
Interestingly markets seem to be ignoring the political risk building in Italy. Peripheral European yield spreads failed to react to Northern League and 5-Star have reached a tentative coalition agreement...
