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  
BOJ Monetary Policy Remains Steady

The Bank of Japan maintained their monetary policy on Friday whilst upgrading their assessment of private consumption...

Final Confirmation for a June Rate Hike

The crucial US labour market data for May will be released today, June 2nd at 13:30 BST. It includes non-farm payrolls...

GBP Under Pressure

The Brexit negotiation process is one of the focuses of the upcoming UK election. Although the Conservative Party has pledged a smooth and orderly...


Oil Slumped Post OPEC Extension

On Thursday, OPEC announced that the existing output cut agreement will be extended for an additional 9 months...

USD Bounces From Month Low

Trump administration has presented its 2018 budget plan to Congress last evening. The budget plan calls to slash $3.6 trillion...

Dollar index hit a new low

The dollar index hit a new post presidential election low of 96.95 on Friday May 19th. EUR/USD hit a high of 1.1211...


USD Hit Post Election Low

To date the dollar index has almost given up all of the post presidential election rally...

BoE Expected to Keep Rates Steady

ECB Governor Draghi will make a speech in the Dutch Parliament at 12:00 BST today. It will be Draghi first speech...

Trump's Tax Reform Plan

US Treasury Secretary Mnuchin announced Trump’s tax reform plan in a press conference...

  


Share: