FX Options Market Update: June 28, 2018
Saxo Bank head of FX trading Dan Juhl-Larsen's latest report on the FX Options space is now live, with a look at risk sentiment, the euro, and several options strategies for playing EURUSD in the current environment.
Click here to download your copy.
A mixed German August ZEW Survey
Due to the holiday break, there are few important economic data releases this week with the exception of some EM central bank meetings and a bunch of European statistics. Fortunately, this morning, the German August ZEW Survey is here to provide something a bit meatier. But the news is both good and bad…
Market Quick Take - August 11, 2020
Equity futures advanced in Asia overnight, extending a rally that has taken the S&P 500 within striking distance of its all-time high set in February. Technology stocks meanwhile are playing catch up after ending lower on Monday in response to simmering U.S. China tensions that may impact the sector. The dollar trades a tad softer while the risk-on sentiment and higher real yields have pushed gold back below the psychological important $2000 level.
How do changes in US real yields impact asset classes?
Falling US real yields have historically been coincident with rising gold, ringing EURUSD and falling USDJPY. These relationships are not that confusing but over time equities do have a positive relationship with real yields and as such equities should not behave as it does right now under rapidly falling real yields as they reflect falling expectations for growth. When we analyse the entire spectrum over change in US real yields we observe that equities rise rapidly under both significantly falling and rising real yields.
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