Rates – what else?
Opening of the week will be important with the Chinese rate decision due although while expectations of movement are low, they are not zero….. The USD continued to be supported most particularly against the EUR which, after new lockdowns in Europe and Lagarde suggesting again that inflation is temporary and there are no plans to […]
Still watching and listening to central bankers
Even though none of the central banks raised rates, the market was most surprised by the Bank of England who “failed” to raise rates and in turn the market quickly bailed its long GBP positions. Coming up this week we do have central bankers Powell, Lagarde and Bailey all speaking and although rates clearly won’t […]
Rate decision week
All about the central banks and their decisions this week. The ECB were cautious and in trying to follow a market calming line did the opposite when Mme Lagarde opined that inflation would last longer than anticipated hence the market bought EUR on the fear of rate rises. But the rally in EUR didn’t last […]
Powell tips the balance
Jerome Powell said on Friday that “its time to taper…not time to raise rates…” admitting inflation could last longer. The market had already been making that decision seeing inflation being less and less transitory. In fact the markets are now pricing the first rate hike by June 22 and 1.5 hikes by Sep 22. The […]
Eiger Awarded ISO/IEC 27001:2013 Certification
London Eiger Trading Advisors Limited (‘Eiger’), a leading financial technology company specialising in commodity Murabaha trade facilitation and execution services, are delighted to have been awarded ISO/IEC 27001:2013 certification, an internationally recognised standard that ensures their products and services meet the needs of customers through an effective quality management system. “We consider the trust of […]
A rising tide lifts all boats
The market has moved from inflation fears to a belief that stagflation is a more likely outcome. Stagflation is high inflation coupled with low economic growth and thus any glimmer of hope as in the recent drop in initial jobless claims will cause risk assets to appreciate. US PPI came in 0.3% less than expected […]
Weak payrolls unlikely to change FED thinking
The US starts with the Columbus Day holiday on Monday. The data sets are skewed towards consumer related inflation numbers which should give the various central banks more evidence of inflation risks and its general direction. But we cannot get away from the fact the recent Non-Farm payroll numbers were weak and the second one […]
Employment numbers to the fore
Politics first – the German election led to a centre left victory but a narrow one which now means that the parties will have to negotiate a coalition which in turn is going to take time and creates indecision which markets dislike and probably leads to EURUSD being capped. For different reasons another of the […]
Not a lot of hot air
For the moment Evergrande is making its debt coupon repayments and that provided the markets with the excuse to buy risk assets and find some confidence. However there remain fears over the company’s ability to repay near term coupons. Out of the three central bank interest rate announcements last week only the Japanese were dovish […]
China fears dominate markets
Markets opening lower: wary of China and most particularly Evergrande (China’s second largest real estate company) which is struggling to meet its debt funding obligations. This, coupled with very poor retail sales last week and other economic data at the bottom end of expectations is starting to worry markets and world growth. These fears have […]