The third quarter of 2018 will be a volatile one, and we expect an inversion of the yield curve by year-end or in the first quarter of 2019. That said, with volatility comes opportunity, and we are looking to investment grade US bonds and high yield short-term corporates to outperform.
Saxo Bank's Quarterly Outlook for Q2 is here, with expert insights and trading themes from our team of strategists. Get your copy here.
Macro Dragon: FOMC Mins & FOMC Speakers Indicate No Cuts Anytime Soon...
Macro Dragon = Daily Cross Asset Views
Macro Dragon: At $1600 Gold is Tactical Short in the Macro Dragon Portfolio...
Macro Dragon = Daily Cross Asset Views. In today's Macro Dragon we highlight the worsening EZ data from overnight with EURUSD continuing to break lower. At the same time the DAX is unfazed breaking to new highs this week, perhaps as a function of the euro weakening. We discuss the key strategic investment views of the Macro Dragon, US vs. Row as well as the META trend of the them all - one cannot hold enough US Duration in KVP's view. Lastly on a tactical basis, We feel Gold back at $1600 is getting ahead of itself given the combination of stronger USD, higher yields & general risk-on sentiment in markets. Whilst we are structural bulls on gold, the MD would be tactically short at these $1600 lvls.
Macro Dragon: US is Back, RBA mins, ZEW, Empire...
Macro Dragon = Daily Cross Asset Views. We take a look at the overnight session that saw a massive GDP miss from Japan. Touch on the continued Risk-On that we are seeing in Equities - CH & HK stocks pretty much back to pre-virus news, yet USDCNH at 6.98 well off the 6.84 lows post the signing of the Phase One deal earlier in April. Today watch out for RBA mins early doors Asia, as well as ZEW data on Germany & the Eurozone, Jobs data out of the UK, Mfg. Out of CA & Empire out of the US.
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