Developed macro
1. Risk-off sessions were seen with intensifying worry about double-dip recession
2. No first-tier data in Europe, but key European speakers in Washington.
Interest rate strategy
1. Barring a rebound in stocks, there isn’t much in today’s news flow that is likely to turn around the trend toward even lower ‘core’ yields.
2. With BTP supply coming next week, ECB support of the periphery has capped yield rises; it seems likely such buying will persis, near-term.
FX strategy
1. CHF upside constrained by SNB but it still has a safe-haven role to play.
2. USD retains its safe-haven allure, ensuring it is breaching key levels against a sequence of currencies.
3. JPY intervention threat could be higher than USD/JPY would imply.
Emerging markets
1. Markets continue to be volatile; growth concern weighs further on sentiment
2. China September flash PMI fell to 49.4, the third month that it was below 50
3. Brazil: August data to show inflows: C/A deficit to narrow to USD 2.9bn while foreign investment continued to come in
Commodity markets
1. Strong USD hurts gold but more painful for silver and palladium…
2. …As base metals are not spared in a fund-led rout.
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http://www.easyforexnews.net/wp-content/uploads/2011/09/WMT_2011-09-23.pdf
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