Morning Call: ECB and FOMC fail to impress
Senior Editor, Saxo Bank
Summary: Financial markets were unimpressed by yesterday's two key monetary policy events while the latest twist in the Brexit saga elicited a similar shoulder shrug, as illustrated by a collapse in EURGBP volatilities. Elsewhere, resurgent risk appetite is firing up EM FX but TRY is left out.
FX Update: Trump touts trade deal, Tories sweep to massive majority
Maximum support for risk sentiment on all fronts as Trump claims Phase One trade deal accomplished, Fed massively expands repo operations to avoid year-end disruptions and the Tories sweep to their largest majority since Margaret Thatcher in the UK election, smoothing the path to a Brexit ahead February 1, even if key questions loom.
APAC Morning Macro Brief – Happy Macro Fri 13 Dec 2019: Fri 13th = Boris UK Win + US-CH Deal
APAC Morning Global Macro & Cross-Asset Snapshot
FX Update: USD rolls over post FOMC, UK election on tap
The market reaction to the FOMC was most notable in the currency market, where the US dollar rolled over as Chair Powell seemed to signal that the Fed is ready to ease any possible liquidity issue over year end. We still need US-China trade war détente to trust the US dollar reaction here. Elsewhere, a pivotal UK election on tap with results rolling in late this evening.
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