Short recap
Asia printed new highs after open
EU opened lower
Trump having financial difficulties with building Mexican
wall
Fed speakers massaging the market with hawkish comments to get ready
for potential Mar 15 hike
Last one was Brainard who turned hawkish from
dovish making the March hike priced at 70% (a level Fed is
comfortable to move)
After yesterday’s PCE important Yellen and Fisher
on Friday and US NFPs next Friday
If all goes hawkish the March hike is a done deal
Potential risk is development around Dutch
and French elections
EURUSD can soon visit the
1.0400/1.0350 levels
USDJPY 117.00
China recently announced measures to open FX
derivatives market for bond investors for hedging purposes
But foreigners seem to be very cautious due to capital
controls still being in place
Oil under pressure from record inventories in US
Stocks in a strong bull market, caution warranted
Snap Inc (owner of Snapchat) completed IPO raising
USD 3.4 bln
Bit of question marks around whether the company will
make it as a Facebook did or will follow the dead end road as Twitter does
As it faces the usual social media challenge of
converting the popularity into cash
Apple – another patent case against the company
was dismissed by US judge
Bunds relaxed their safe heaven status and trade
below 165 with yield 0.29%
10 yr Bund yield at 0.29%
10 yr US Trys yield at 2.45% (range of
2.30-2.52%)
EZ core bonds face headwinds from positive outcome
of EZ election
And potential ECB tapering. Please bear in mind that
tapering is expected to impact EZ core bonds only, spiking their yields.
Corporates do well, spreads with cores contracting
Enjoying equity rally, strong buying on positive
developments
EM bonds doing well as well despite Fed hike last
year and upcoming hikes this year
Still see strong buying flows
Data
Thu:
EZ: Unemployment – no change expected
EZ: CPI Estimate – to move to 2% (highest since 2013)
US: Initial Jobless Claims – to remain stable at low
levels
Fed’s Mester speaking
Fri:
US: ISM Non-manufacturing activity index – expecting no
change
US: NFPs only next week on Mar 10
Fed’s Yellen, Evans,
Lacker, Powell, Fisher speaking
Next Friday:
US: NFPs
Should you have any questions feel free to contact me
anytime.
Good luck Champs!
Mr Hawk
DISCLAIMER: This material was created for informational
purposes only and represents the Land of Trading team’s view of the past and
current economic and capital market environment. It is not an investment advice
and should not be viewed that way at all, and the creators of this material
cannot be held liable for any potential losses resulting from trading, where despite
this disclaimer someone would consider this material as an investment advice.
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