Treasuries weren't the only beneficiaries of the volatility spurred by the U.S. election. Surprisingly, risky assets have been rallying too. U.S. junk credit spreads have tightened significantly while investment-grade spreads are lagging. We believe that investors are buying higher-yielding assets because they expect more support from the Federal Reserve. The...
FX Update: Resumption of the Everything Up and USD down trade?
Since election day, nearly all assets are enjoying a strong surge, from government- and high yield bonds to stocks and precious metals, while the US dollar is the flipside of this development, weakening sharply. This despite at least two years of political gridlock likely preventing US fiscal stimulus from flowing....
Podcast: Bad is good, or Adventures in the Land of Everything Up
Today we look at whether the Everything Up trade can continue from here, and if so, the narrative that is driving it, especially TINA and the idea that the Fed will remain hyperactive as long as US political gridlock means fiscal stimulus will remain largely handcuffed for some time. Today...
Breakout Identified in EURJPY
Signal ID: 73920 Time Issued: Friday, 06 November 2020 03:42:15 GMT Status: open Entry: 122.102 - 122.495 Limit: 121.550 Stop Loss: 123.122 The Breakout Opportunities system has just sold EURJPY at 122.286. The system recommends entering this trade at any price between 122.102 and 122.495. The signal was issued because...
USDCHF can see a bounce at key support zone !
USDCHF can see a bounce at key support zone !
USDCHF can see a bounce at key support zone !
USDCHF can see a bounce at key support zone !
Market Quick Take – November 6, 2020
As the final votes are being tallied in the US Election, the accumulation of mail-in votes looks set to send Biden over the top, although President Trump is crying foul and has declared himself the winner. The Fed kept a very low profile at its meeting last night and markets...
EURUSD is approaching support, potential bounce | 6 Nov 2020 Lon
Price is approaching our first support in line with our trend line where we could see a bounce above this level.
EURUSD is approaching support, potential bounce | 6 Nov 2020
Price is approaching our first support in line with our trend line where we could see a bounce above this level.
The ”no policy uncertainty” and back to TINA trades
The current US election path leading to a Biden victory with a senate majority by the Republicans seems to be the best of all outcomes for equities. No policy uncertainty on corporate tax rate or health care reforms leading to a big repricing of technology and health care stocks in...