Developed macro
1. Contagion from the eurozone debt crisis is spreading quickly, threatening to turn a regional crisis into a global crisis
2. UK retail sales expected to contract in October
3. US housing starts in October likely retraced 7.3% to 610K .
4. US November Philly Fed index is expected to move higher.
Interest rate strategy
1. Directional trading remains periphery-obsessed and, essentially, range bound for core rates.
2. The new 2022 Spanish issue is priced at a hefty ‘roll’ to the 2021 but the main question, right now, is ability to place plenty of paper, not RV.
3. France is also facing a liquidity test in its BTAN auction, after recent sharp rises in yields.
FX strategy
1. While the jury is still out on QE, the USD is enjoying some relief from receding expectations that the Fed will forced to purchase more assets.
2. EUR will find direction from the Spanish bond auction but remains prone to further downside risks.
3. NZ’s yield advantage over the US has narrowed but it appears that the kiwi has weakened by even more than would be expected.
Emerging markets
1. Singaporean exports to come in weak, highlighting Asia’s vulnerability to weakens in external demand
2. Prospects for further fine-tuning of Chinese monetary policy in focus amid likely cut in yield at today’s open market operation
Click here to read the full report:
http://www.easyforexnews.net/wp-content/uploads/2011/11/WMT_2011-11-17.pdf
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