Monday November 9, 2009 - 10:33:22 GMT
Share This Story
Lloyds TSB Financial Markets - www.lloydstsb.com/corporatemarkets
Daily Market Strategy - Pro-risk back on, trend set for remainder of Q4?
Daily Market Strategy
Monday, 6 November 2009
Pro-risk back on, trend set for remainder of Q4?
ā¢ GBP/USD targeting 1.70 area ahead of BoE QIR
The remarkable ability of markets to climb a wall of worry was put in the spotlight again on Friday as equities and pro-risk currencies looked through the surge in the US jobless rate above 10%. The decision by G20 finance ministers this weekend to keep stimulus measures in place and not to comment on currencies has given fresh ammunition to the carry trade and the dollar funding of pro-risk strategies. GBP/USD cleared 1.6750 overnight and unless the BoE āintervenesā with a dovish Inflation Report on Wednesday, it could be hard to stop the pairās ascent to 1.70. IMM short GBP positions dropped to a near two-month low last week and further short covering may result in further upside vs the USD ahead of Wednesday. For government bonds, the rally in equities - S&P futures are up 5.8 points - means upward pressure on yields and risk of further bear steepening into the US refunding.
Ahead today: a fairly quiet day for economic data and with interest geared towards the BoEās first Ā£1.7bn reverse auction of the ānewā Ā£25bn of QE and the $40bn US 3y note auction. German industrial output is forecast to show a fourth increase in five months in September. German export stats for September beat estimates earlier and this will buoy optimism for a positive Q3 GDP number next week.
This document is confidential, for your information only and must not be distributed, in whole or in part, to any person not involved with the proposed transaction without the prior consent of Lloyds TSB Bank plc (āLTSBā). Whilst LTSB has exercised reasonable care in preparing this document and any views or information expressed or presented are based on sources it believes to be accurate and reliable, no representation or warranty, express or implied, is made as to the accuracy, reliability or completeness of the information contained herein. In particular, whilst we have sought to identify appropriate products and to provide guidance as to how those products might operate under various accounting standards we are not, and should not be considered to be, giving an accounting opinion or advice and you should conduct your own independent enquiries and seek your own professional advice in this respect. Any transaction which you may enter into with us will be on the basis that you have made your own independent evaluations based on your own knowledge and experience and any professional advice which you may have sought in relation to all aspects of the transaction including legal, regulatory, tax or accounting. All terms contained herein, including pricing, are indicative only and subject to change without notice. This material has been prepared for information purposes only and LTSB, its directors, officers and employees are not responsible for any consequences arising from any reliance upon such information. If you receive information from us which is inconsistent with other information which you have received from us, you should refer this to your LTSB Sales representative for clarification. Lloyds TSB Corporate Markets is a trading name of LTSB. LTSBās registered office is at 25 Gresham Street, London EC2V 7HN and it is registered in England and Wales under no. 2065. LTSB is authorized and regulated by the Financial Services Authority. (11.07)
Forex Trading News
Daily Forex Market News
Forex news reports can be found on the forex research
headlines page below. Here you will find real-time forex market news reports
provided by respected contributors of currency trading information. Daily forex
market news, weekly forex research and monthly forex news features can be found
Real-time forex market news reports and features providing
other currency trading information can be accessed by clicking on any of the
headlines below. At the top of the forex blog page you will find the latest
forex trading information. Scroll down the page if you are looking for less
recent currency trading information. Scroll to the bottom of fx blog headlines
and click on the link for past reports on forex. Currency world news reports
from previous years can be found on the left sidebar under "FX Archives."