Unhedged capital flows into the EZ have been attributed to the following factors:
- Perception that EZ political risks have subsided, returning market focus back to economic fundamentals
- Improving economic fundamental picture and upside surprises in eco indicators have prompted significant asset allocation shift to European equities and thus, expectations of a...
In effect, this is an extension of my aussie trade posted pre-Trump (26th October 2016) in which we bagged 500 pips.
AUDUSD has seen rapid recovery off the back of both dollar weakness (mainly due to lack of details of the US administration's economic plans) and rapidly rising commodity prices, in particular iron ore (/it has rallied 10% recently,...
Something special happened last week: the Fed funds rate rose to 66bps.
Why is this important? Historically, /dx depends on not only the direction of US yields, but also the absolute level.
A "high yielder" can be defined as a currency whose central bank offers at least the third highest central bank yield in the G10. By this definition, USD...