Borrowing costs to be managed Gov'ts around the world are now massively ramping up their levels of borrowing to manage the COVID-19 crisis. This borrowing is going to extend beyond the short ends of the yield curves, so central banks are not going to want to see borrowing costs for 10 years and beyond start […]
Blogs
Germany heading for biggest slump since the end of WW2?
Via Reuters This is a reaction piece to the poor German trade balance out earlier today. See here. It looks like a hard slog for German trade to bounce back after its latest blow via COVID-19.
Harvard Research suggests COVID-19 outbreak started in August
Via Reuters The coronavirus might have been spreading in China as early as August last year, according to Harvard Medical School. This was based on research on satellite images of hospital travel patterns and search engine data. However, China has dismissed the report as "ridiculous". For bank trade ideas, check out eFX Plus
ECB's Rehn on 'Fallen Angels'
via Reuters The definition of a 'fallen angel' bond is a bond that has been reduced to junk status because its issuer has fallen into financial trouble. The discussion is whether certain companies that have had their investment grade reduced due to COVID-19 might be eligible for receiving monetary policy help.
Eurozone Q1 revised GDP -3.6% vs -3.8% q/q expected
Eurostat – June 09 These are the revised numbers so not a lot was being expected from the print. Q2 is going to be in key focus. These readings show a better then expected revision for q/q GDP, so that plays into the hopes that the impact on economies were not as bad as feared. […]
UK Finance Minister on UK loan latest
Latest furlough scheme news The bill adds up for the COVID-19 outbreak. Put it on the tab, please. For bank trade ideas, check out eFX Plus
Risk off tone accelerates
Risk off tone amplifies Oil down -1.20%, copper flat on the day, bond yields lower, and strength in the JPY, CHF and USD alongside weakness in the commodity currencies. (AUD, NZD, CAD)
French Finance Minister declares state of emergency for Aerospace industry
Aid to come For bank trade ideas, check out eFX Plus
USDJPY falls into key daily support
Should limit downside The USDJPY pair has been sliding on the strength of the JPY, but price now sits in a firm daily support level. The JPY strength is being attributed to a potential dovish outlook from the Fed on Wednesday. However, further downside should be capped if the risk off tone continues as this […]
AUDUSD retries support at the 100 hour MA
Swing area at 0.69487-56 The AUDUSD moved below it's 100 hour MA as risk off dominated in the Asian and London morning session. The NY session has seen some of that "risk off" ease. The Nasdaq is back higher. Yields are still lower and the S&P and Dow is still lower, but it is a […]