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.
Market Quick Take - August 10, 2020
Equity futures are starting higher with especially European equity futures bid extending on the gains in Asia. The USD is weaker against the EUR and JPY while continuing to strengthen against various EM currencies with most notably the BRL, TRY and CPL. Gold is licking its wounds from Friday but is stabilising together with US real yields. Brent crude is also starting the week a bit firmer on Saudi Arabia's oil outlook.
What have Saxo’s best-performing clients in 2020 traded?
Throughout the first five months of 2020, the financial markets offered extraordinary trading opportunities, as huge volatility swings gave traders the chance to capitalise on both falling and rising markets. In this article, we look at which asset classes our 100 best-performing clients from each key region traded - and a clear trend emerges.