Morning Call: Markets take an ugly turn
Senior Editor, Saxo Bank
Summary: Financial markets have started the week on a nervous note, spooked by an array of unfriendly indicators including Friday's yield curve inversion and US stock tumble, as well as the broad equity losses seen overnight in Asia, especially Japan.
FX Update: USD shrugs off Fed’s balance sheet expansion
The USD weakened a bit further on Friday, but has stabilised again to start the week, even after the Fed announced a larger than expected expansion of its balance sheet aimed at rebuilding reserves. Meanwhile, the Trump announcement Friday of a first phase US-China handshake trade deal provided a modest boost in risk sentiment.
Macro Monday Week 42: "Phase One" - here we go again...
This week starts with equities rallying out of the gates on the euphoria of "Phase One" partial deal completion in the works between the US and China. Love it or hate it, believe or disbelieve it - respect the price action, our roles are to make money consistently over time. We could see a squeeze higher in risk-on assets and a pullback in risk-off assets over the near team.
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