Risk appetite returns, but for how long

9 July, 2015

Risk assets have stabilized with even Chinese stocks staging a strong bounce as regulators impose short selling restrictions and take other measures to prevent further carnage of their equity market. This allowed iron ore prices to recover a little and as a result the Aussie was given a boost with AUDUSD almost recovering to 0.7500, currently it’s trading at 0.7475. There was also better than expected Australian employment data overnight further supporting the Aussie allowing AUDNZD to bounce off the 1.1000 level.

The bounce in risk appetite will be tested today and for the remainder of the week as the Eurogroup waits to receive Greece’s latest reform proposals. The creditors resolve has been severely tested throughout this debacle and with patience wearing thin this time is Greece’s final opportunity to put forward something palatable. There is also a growing acceptance, at least from the IMF, that we have got to the stage where debt relief needs to happen in order to keep Greece in the Eurozone. But such a move increases the risks of contagion with the prospect of political upheavals in other debt laden countries seeking for their own debt write downs. Even if a deal is agreed there’s sign off required from the Greek and German governments, so plenty of hurdles to overcome in order to prevent a Grexit.


Source link  
USD Suffers on Subpoena News

The Trump Administration is back in the spotlight with news of a report that Special counsel Robert Mueller’s investigators have issued a subpoena...

Positive data negated by tax plan opposition

The US Labor Department released data on Wednesday showing the consumer price index edged up by 0.1% in October after climbing by 0.5%...

Data Boosts EUR Can CPI Boost USD?

EUR received a boost on Tuesday, as data from Destatis showed German Preliminary GDP climbed to 0.8% in Q3, beating forecasts of 0.6%. In addition...


Chinese Data Disappoints

China’s economy has been robust throughout 2017 as a continued recovery in manufacturing and industrial sectors, a healthy property market...

Data & Polls Pressure Sterling

Sterling suffered downward pressure on Tuesday as the latest monthly report from the British Retail Consortium showed non-food sales slumping...

Closing the Year on a Strong Note

Data released on Monday indicates that the Eurozone economy is on target to close out 2017 strongly. The latest Markit composite PMI fell...


Sterling Falls on Rate Rise

In line with market expectations, the Bank of England raised the UK base rate to 0.5% (from 0.25%) on Thursday. The rise, the first in 10 years, was widely...

Another Political Headache for Trump

USD gave up some of its recent gains on news that investigators had charged President Trump’s former campaign manager regarding...

US Jobless Claims Lowest Since 1973

US Department of Labor released Initial Jobless Claims for the week ending October 13th that showed a resilient and stable labor market...

  


Share: