Christine Lagarde new ECB president
Chief Economist & CIO
Summary: Saxo CIO Steen Jakobsen offers a quick update on the implications of critical developments for the ECB and the Federal Reserve over the last 24 hours. First, Christine Lagarde's appointment as next ECB President and what it means, especially for the independence of the ECB, and second US President Trump's nomination of two policy doves for the empty spots on the Fed Board of Governors.
FX Breakout Monitor: EUR wilts as USD pokes higher still
Momentum traders are still amidst their long walk in the desert as FX volatility levels poke around within reach of all time record lows. The euro is poking around at new local lows versus the US dollar and elsewhere, while the big dollar is taking a peek at upside break elsewhere as well.
Equity rally continues but be aware of rising Japanese yields and crowded VIX trade
Equities continue to rally expecting the economy to rebound and a "phase one" US-China trade deal, but below the surface risks are lurking
FX Update: Bond yields a major driver ahead of Trump speech
Despite uncertainty over whether a US-China trade deal remains on course, complacency remains the name of the game as equities pull back higher and safe haven bonds wilt. But at what level do rising US long rates impact risk appetite and EM? The market awaits a speech from US President Trump later today that should included hints on the US trade stance.
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