Market Overview

The euro opened the week sharply lower, unsettled by political turmoil in Italy. The Italian cabinet failed to agree on the measures to lower the budget deficit to meet EU's limit. Prime minister...

Markets lacked a clear direction last week. The speculations on Fed's tapering, which was a main market drive in August and early September, faded. Markets seemed to be pricing out of October tapering...

EUR/USD Today’s support: - 1.3467 and 1.3449(main),where correction is possible. Break would give 1.3432, where correction also may be. Then follows 1.3413. Break of the latter would result in...

In recent commentaries we’ve looked at the possible scenario for an October stock market correction. This scenario is based on Kress cycle “echo” considerations as well as a number...

Markets finally seem to be aware that a debt ceiling is coming. There probably won’t be as much of a sell off as was witnessed saw in 2011, when markets dropped more than 15 percent, because the...

STOCKS: The world economy is muddling through. The US payroll tax increase and sequestration are headwinds to the US economy, China is being pressured by Japan, and both the US and Chineese housing...

Here are a few interesting charts from last week's Commitment of Traders report: Chart 1: Positioning in the Euro has now exceeded 11 billion dollarsOver the last two weeks, the US dollar has broken...

EURUSD – Trapped Within Small Range After clearing above the key 1.3450 level post FOMC announcement two weeks ago, the pair has literally trotted in place, stuck mostly within a 100 pip range...

Friday’s dollar losses were looking quite good, but today’s open has tended to destroy the bearish outlook, at least in some pairs, maybe all. While not showing in the charts there seems...

There was an interesting nugget of data buried deep in Thursday’s GDP report from the Bureau of Economic Analysis: The rate of change of the deflator for personal consumption expenditures fell...

Buy a 1Y1Y SEK payer swaption with strike 2% (20bp above ATMF). Sell a 1Y1YEUR payer swaption with strike 0.80% (10bp above ATMF).The Riksbank in a much stronger position than the ECB. The current 3M...

Market Movers ahead The deadline for a US budget deal for FY 2014 is Monday evening, and the risk of a government shutdown from Tuesday has increased. We expect a significant rebound in US job...

Better organised than it was two years ago, and with a less fragile periphery, the eurozone has increased its chances of seeing the economic recovery continue. This would mark the beginning of an...

Although growth is accelerating, it remains in line with its long-term potential, which is not strong enough to substantially reduce over-capacities. The unemployment rate is falling, but neither...