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17 Mar 2014
Flash: Expect reactionary markets this week - TDS
FXStreet (Bali) - Richard Kelly, Head of European Rates/FX Research at TD Securities, the trading environment this week is likely to be dominated by reactionary markets and low conviction positions.
So even before thinking about data this week, and ignoring other items like RBA and BoE Minutes or the UK budget, it is clear that there is a maelstrom of event risks to navigate.
Looking through the common factors, it would seem to suggest a good week for those long fixed income if the Ukrainian tensions persist and FOMC proves dovish. But more clearly, this is likely going to be a week of following the bouncing headlines, which makes for much more reactionary markets and low conviction positions.
This will not persist forever, but we may need to wait until well into April before we have clear signals on the likes of the US, China, and geopolitical risks, in order to open the door to broader macro trends and trades.
So even before thinking about data this week, and ignoring other items like RBA and BoE Minutes or the UK budget, it is clear that there is a maelstrom of event risks to navigate.
Looking through the common factors, it would seem to suggest a good week for those long fixed income if the Ukrainian tensions persist and FOMC proves dovish. But more clearly, this is likely going to be a week of following the bouncing headlines, which makes for much more reactionary markets and low conviction positions.
This will not persist forever, but we may need to wait until well into April before we have clear signals on the likes of the US, China, and geopolitical risks, in order to open the door to broader macro trends and trades.