by Ashraf Laidi Posted: Feb 7, 2013 11:40 Comments: 0 View Media
This thread was started in response to the Media:
أشرف العايدي على العربية -- 6 فبراير2013
Ashraf doesn't t expect Draghi to make any references to tempering the rise of the euro such as "watching" the markets with "vigilance" because these consist of a threat to intervene, which would be counterproductive considering the currency was on the verge of collapse six months ago.
During yesterday's sleepy markets, I highlighted in this tweet the rally in bund futures (rising prices, falling yields) may signal similar price action at the subsequent session, when US bond yields/prices return from Memorial Day Weekend. Today's bond price action did not disappoint, as the homogenous asset class moved in concert, delivering gap ups in prices and falling yields. This was a desperately needed development for yen bulls (particularly USDJPY shorts). Interpret what you wish from the chart below as to which is the dependent and independent variable (USDJPY or yield spread). Who leads whom? Shorting USDJPY has been the "pain trade" for our WhatsApp Broadcast Group, as we await Wednesday's debt ceiling vote and the JOLTs survey. Hanging in there.